- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 54. Basics of Portfolio Planning and Construction
- Subject 2. Investment Risk and Return Objectives, and Risk Tolerance
CFA Practice Question
To measure relative risk, an analyst should use ______.
A. standard deviation
B. tracking error
C. value at risk
Explanation: Tracking error is a measure of how closely a portfolio follows the index to which it is benchmarked.
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