Consider the following bootstrapped 3-year performance of an actively managed investor's portfolio and a relevant benchmark: Investor's Portfolio Benchmark Portfolio Iteration Portfolio Value Portfolio Portfolio Value Portfolio Return t=3 Return p.a. t=3 p.a. 1.3 9.1% 1.2 6.3% 0.9 -3.5% 0.9 -3.5% 3 0.9 -3.5% 0.8 -7.2% 4 1.2 6.3% 1.1 3.2% 5 1.3 9.1% 1.2 6.3% What is the tracking error of investor's portfolio relative to the benchmark (compounded outperformance) over 3 years (rounded to one decimal place)? Select one: O a. 1.4% ОБ. 2.7% Oc 4.5% O d. 4.6% None of the above 2. 1.
Consider the following bootstrapped 3-year performance of an actively managed investor's portfolio and a relevant benchmark: Investor's Portfolio Benchmark Portfolio Iteration Portfolio Value Portfolio Portfolio Value Portfolio Return t=3 Return p.a. t=3 p.a. 1.3 9.1% 1.2 6.3% 0.9 -3.5% 0.9 -3.5% 3 0.9 -3.5% 0.8 -7.2% 4 1.2 6.3% 1.1 3.2% 5 1.3 9.1% 1.2 6.3% What is the tracking error of investor's portfolio relative to the benchmark (compounded outperformance) over 3 years (rounded to one decimal place)? Select one: O a. 1.4% ОБ. 2.7% Oc 4.5% O d. 4.6% None of the above 2. 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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