The cost of active management is the coefficient $\sigma$_ER and it is sometimes referred to as A)Market timing. B)Reward for risk. C)Excess reward. D)Excess risk. E)Tracking error.

Question

Quizplus · Accepted Answer

The cost of active management is often referred to as the tracking error, which is the standard deviation of the difference between the portfolio return and the benchmark return.

The Cost of Active Management Is the Coefficient σ\sigmaσ ER and It Is Sometimes Referred to as A)Market Timing

The Cost of Active Management Is the Coefficient $\sigma$ _ER and It Is Sometimes Referred to as
A)Market Timing