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Question 5 2 pts Which of the following is an incorrect statement regarding the relationship between Abnormal Returns (Alphas) that a fund generates and its

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Question 5 2 pts Which of the following is an incorrect statement regarding the relationship between Abnormal Returns (Alphas) that a fund generates and its Tracking Error against a benchmark? Tracking errors cannot be negative but abnormal returns (Alphas) can be negative High Tracking Error can result in low and negative Abnormal Returns (Alphas) Investors determine the level of tracking error and then choose the fund that has a high significant abnormal return (alpha) High Abnormal Returns (Alphas) are a result of high Tracking Errors. High Tracking Error results in high positive Abnormal Returns (Alphas) Question 5 2 pts Which of the following is an incorrect statement regarding the relationship between Abnormal Returns (Alphas) that a fund generates and its Tracking Error against a benchmark? Tracking errors cannot be negative but abnormal returns (Alphas) can be negative High Tracking Error can result in low and negative Abnormal Returns (Alphas) Investors determine the level of tracking error and then choose the fund that has a high significant abnormal return (alpha) High Abnormal Returns (Alphas) are a result of high Tracking Errors. High Tracking Error results in high positive Abnormal Returns (Alphas)

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