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Basic Question 6 of 14
The tracking error of an equity manager is 8%. What is MOST LIKELY the manager's investment strategy?
B. Enhanced index investment strategy
C. Aggressive active investment strategy
A. Well-executed passive investment strategy
B. Enhanced index investment strategy
C. Aggressive active investment strategy
User Contributed Comments 1
| User | Comment |
|---|---|
| rodney176 | How would I know the range ? |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.