The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.

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Question:

The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.

A.

return; portfolio performance

B.

total risk; portfolio performance

C.

beta; portfolio performance

D.

beta; benchmark risk

Answer» c. beta; portfolio performance

Note: The above multiple-choice question is for all general and Competitive Exams in India.