Question 16 (Mandatory) (1 point) Which of the following statements about tracking error is incorrect? The more diversified a portfolio, the lower it's tracking error all the above are correct It results from firm-specific risk It is the standard deviation of the active return of an active portfolio Question 17 (Mandatory) (1 point) The Information Ratio tells us, for an active manager (think hedge fund), how much risk the manager took to generate an outperformance return of alpha. O True False Question 16 (Mandatory) (1 point) Which of the following statements about tracking error is incorrect? The more diversified a portfolio, the lower it's tracking error all the above are correct It results from firm-specific risk It is the standard deviation of the active return of an active portfolio Question 17 (Mandatory) (1 point) The Information Ratio tells us, for an active manager (think hedge fund), how much risk the manager took to generate an outperformance return of alpha. O True False