Which of the following is true of tracking error and the present value of the cash flows of a project?
A) If a tracking portfolio for the future cash flows of a project generates tracking error with zero systematic risk and zero expected value,the market value of the tracking portfolio is the undiscounted cash flows of the project.
B) If a tracking portfolio for the future cash flows of a project generates tracking error with zero systematic risk and zero expected value,the market value of the tracking portfolio is equal to the project?s future cash outflows.
C) If a tracking portfolio for the future cash flows of a project generates tracking error with zero systematic risk and zero expected value,the market value of the tracking portfolio is equal to the project?s future cash inflows.
D) If a tracking portfolio for the future cash flows of a project generates tracking error with zero systematic risk and zero expected value,the market value of the tracking portfolio is the present value of the project?s future cash flows.
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