Question: Why might one expect that for a manager pursuing an active management strategy that the backward-looking tracking error at the beginning of the year will

Why might one expect that for a manager pursuing an active management strategy that the backward-looking tracking error at the beginning of the year will deviate from the forward-looking tracking error at the beginning of the year?

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The portfolio manager needs a forwardlooking estimate of tracking error to reflect the portfolio risk going forward The way this is done in practice i... View full answer

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