Question: What is tracking risk? Multiple Choice also known as active risk, measures the divergence between the returns of a portfolio and the returns of its

What is tracking risk?
Multiple Choice
also known as active risk, measures the divergence between the returns of a portfolio and the returns of its benchmark index over a specific period.
The difference between a portfolio's return and the risk-free rate, divided by the portfolio's beta.
A measure of a portfolio's total volatility, regardless of a benchmark, over a specific period.

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