A measure of the variability with which a portfolios return matches the return of a benchmark index is called _____.

A) tracking error

B) credit risk

C) yield curve risk

D) optionality risk

If you are an asset-liability investor, you may decide to employ a cash flow matching strategy. As a result, you will attempt to create a portfolio _____.

A) that has the same duration as that of your future liability stream

B) which has cash flows that match those of your future liability stream

C) which holds primarily in short-term fixed-income securities

D) which holds primarily in long-term fixed-income securities