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Basic Question 6 of 14
The tracking error of an equity manager is 8%. What is MOST LIKELY the manager's investment strategy?
B. Enhanced index investment strategy
C. Aggressive active investment strategy
A. Well-executed passive investment strategy
B. Enhanced index investment strategy
C. Aggressive active investment strategy
User Contributed Comments 1
| User | Comment |
|---|---|
| rodney176 | How would I know the range ? |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.