What is meant by tracking error due to systematic risk factors?
Answer to relevant QuestionsYou are reviewing a report by a portfolio manager that indicates that a fund’s predicted (forward-looking) tracking error is 94.87 basis points. Furthermore, it is reported that the predicted tracking error due to ...In a factor model, what is meant by isolated tracking error? What is tracking error? Answer the below questions. (a)How is the Barclays Capital Liquidity Cost Score calculated for a spread-quoted bonds? (b)How is the Barclays Capital Liquidity Cost Score calculated for a price-quoted bonds? Why in managing a defined benefit pension plan is it necessary for the plan sponsor to pursue a liability-driven solution rather pursue a strategy that focuses only on management of the assets?
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