Which statement is correct for a risk parity portfolio: The risk contribution of each asset to the portfolio is the same The return contribution of each asset to the portfolio is the same it is much more riskier than a traditional mean-variance optimized portfolio none of the statements is correct Question 4 0.5pts Tracking error can be calculated by: Standard error from the regression of the portfolio returns on the benchmark returns standard deviation of the benchmark retum standard deviation of the S\&P 500 index standard deviation of the portfolio return If the weights of assets of an index are exactly equal to the weights of the assets in a portfolio, then: Portfollo performance will be similar to the index Portfolio will outperform the index Portfolio will underfunded the index portfolio performance is uncelated to index performance Question 2 0.5 pts Which statement about active risk is correct: active risk is the standard deviation of the excess return of a portfolio over a benchmark active risk is relevant for passive fund active risk is the numerator in the information ratio active risk is not relevant for an active fund