* Use the following information to answer the next three questions *
$$\begin{array} { | l | c | c | c | }
\hline \text { Asset } & \begin{array} { c }
\text { Mean Annual } \
\text { Return }
\end{array} & \text { Beta } & \begin{array} { c }
\text { Standard } \
\text { Devintinn }
\end{array} \
\hline \text { Fund A } & 16 \% & 1.20 & 24 \% \
\hline \text { Benchrnark } & 14 \% & 1.10 & 19 \% \
\hline \text { Fund A minus Benchrnark } & 2 \% & \text { NA } & 4 \% \
\hline \text { Treasury Security } & 3 \% & \text { NA } & \text { NA } \
\hline
\end{array}$$
-What is Fund A's tracking risk?
A) 2%
B) 4%
C) 5%
D) 24%

Question

* Use the following information to answer the next three questions *
 $$\begin{array} { | l | c | c | c | } 
\hline \text { Asset } & \begin{array} { c } 
\text { Mean Annual } \
\text { Return }
\end{array} & \text { Beta } & \begin{array} { c } 
\text { Standard } \
\text { Devintinn }
\end{array} \
\hline \text { Fund A } & 16 \% & 1.20 & 24 \% \
\hline \text { Benchrnark } & 14 \% & 1.10 & 19 \% \
\hline \text { Fund A minus Benchrnark } & 2 \% & \text { NA } & 4 \% \
\hline \text { Treasury Security } & 3 \% & \text { NA } & \text { NA } \
\hline
\end{array}$$
-What is Fund A's tracking risk?
A) 2%
B) 4%
C) 5%
D) 24%

Quizplus · Accepted Answer

Tracking risk is the standard deviation of the difference in returns between Fund A and the benchmark, which is given as 4%.

* Use the Following Information to Answer the Next Three