Question: Explain the difference between a Mean-Variance optimised portfolio that uses absolute risks (standard deviation) of returns as a risk measure and a MV optimised portfolio

Explain the difference between a Mean-Variance optimised portfolio that uses absolute risks (standard deviation) of returns as a risk measure and a MV optimised portfolio that use relative risk (Tracking Error) as a risk measure? Further, explain the difference between the type of investor who would use the former over the latter method of portfolio construction.

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