Tracking error

[frm_daniel]

Hi David,

I saw the forum with feedback of 09 FRM exam with the posting of a question on tracking error: It hints that "3 graphs were given with benchmark and fund returns. Tell which one has lowest tracking error.". I try to figure out how the question actually asks and hopfully test my understanding of the topic. However, I couldn't get the answer with no numbers but only the graphs are given. Do you have any idea? Sorry it may not be a proper approach to ask questions from you in the forum with no clear information given.

Daniel

 

[David Harper CFA FRM]

Hi Daniel,

Apologies, I don't recollect (nor does a site search, for me, seem to produce...) that exam question ... such a visual-only could be tricky so i'd hesitate to speculate what it was trying to show/query about. (and, you may not know but nobody has access to the actual 2009 questions, at this point in time, so i have no means of even retrieving it). David