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A portfolio manager wants to construct a portfolio relative to a well- diversified benchmark. If he substitutes benchmark holdings with securities that are highly similar

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A portfolio manager wants to construct a portfolio relative to a well- diversified benchmark. If he substitutes benchmark holdings with securities that are highly similar but not in the benchmark, which of the following statements is most correct? Select one: a. This will increase both active share and tracking error substantially b. This will increase tracking error but not active share substantially c. This will increase active share but not tracking error substantially d. This will not increase active share nor tracking error substantially

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