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Basic Question 2 of 14
Which terminologies refer to the same thing?
II. Active risk.
III. Tracking risk.
IV. Tracking error.
I. Active return.
II. Active risk.
III. Tracking risk.
IV. Tracking error.
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Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain sources of active risk and interpret tracking risk and the information ratio;
describe uses of multifactor models and interpret the output of analyses based on multifactor models;
describe the potential benefits for investors in considering multiple risk dimensions when modeling asset returns.
CFA® 2025 Level II Curriculum, Volume 5, Module 40.