Question
Suppose Fund A is benchmarked to the S&P 500 index. The fund and the index realized the following returns over the past five years. Calculate
Suppose Fund A is benchmarked to the S&P 500 index. The fund and the index realized the following returns over the past five years. Calculate the tracking error. Answer in percent to four decimal places. Which type of manager would prefer a high tracking error passive or active?
Fund A S&P 500
2019 11.00% 12.00%
2018 3.00% 5.00%
2017 12.00% 13.00%
2016 14.00% 9.00%
2015 8.00% 7.00%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
