- 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
Tracking risk is equal to ______.
A. active risk
B. active factor risk
C. active factor risk + active specific risk
Explanation: Tracking risk is also known as active risk or tracking error. Note that C is active risk squared.
User Contributed Comments 3
| User | Comment |
|---|---|
| janis36 | I fell for C. |
| pmdallman | Me too :( |
| b25331 | oooom …. C :-( |