- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 41. Using Multifactor Models
- Subject 3. Multifactor Models: Selected Applications
CFA Practice Question
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
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 ? |