CFA Practice Question

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CFA Practice Question

The tracking error of an equity manager is 8%. What is MOST LIKELY the manager's investment strategy?

A. Well-executed passive investment strategy
B. Enhanced index investment strategy
C. Aggressive active investment strategy
Correct Answer: C

The tracking error is often in the range of 6% to 10% for an aggressive active equity manager.

User Contributed Comments 1

User Comment
rodney176 How would I know the range ?
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