Question: Calculate the tracking error for Manager A relative to the index. You are told that Manager B had a tracking error of 2.07%. Which

Calculate the tracking error for Manager A relative to the index. You

Calculate the tracking error for Manager A relative to the index. You are told that Manager B had a tracking error of 2.07%. Which manager did a better job of limiting his or her client's unsystematic risk exposure? Explain. Returns are on an annual basis. Period Manager A Index (%) 7.5 4.2 1 2 3 4 5 6 Attach Fle (%) 7.9 3.7 8.6 -4.0 -7.6 10.9 9.2 -4.3 -8.0 11.1

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