F
Finance Interview Prep
Home
Learn
How it works
Insights
Log in
Sign up
Asset Management
~55s
Risk Management
1 / 3
Try it free • Sign up to save progress
easy
Risk Measures, VaR & Stress Testing
What is the clearest difference between portfolio volatility and tracking error?
A
Tracking error only applies to cash portfolios
B
Tracking error is the expected outperformance vs benchmark
C
Volatility is absolute risk; tracking error is the volatility of active returns vs benchmark
D
Volatility and tracking error are identical for any portfolio
Previous
Select an answer to continue