Why is the tracking error more important than portfolio variance of returns when a portfolio manager’s performance is measured versus a benchmark?
Answer to relevant QuestionsWhat is tracking error? Studies have suggested that credit spreads in the market have been observed to be greaterthan what can be justified by default and recoveryrates. Explain how by quantifying liquidityspreads, one can obtain a truer measure of ...Give two examples of a structure trade. “I can immunize a portfolio simply by investingin zero-coupon Treasury bonds.” Comment on this statement. How does a defined benefit pension plan differfrom a defined contribution plan?
Post your question