- CFA Exams
- CFA Level I Exam
- Study Session 16. Portfolio Management (1)
- Reading 44. Using Multifactor Models
- Subject 3. Multifactor models: selected applications
CFA Practice Question
An indexing strategy likely has a tracking error of ______.
A. < 1%
B. 2% - 6%
C. 6% - 9%
Explanation: A well-executed passive investment strategy can often achieve a tracking error of 0.10% or less.
User Contributed Comments 0
You need to log in first to add your comment.