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Was ist Tracking Error?

Tracking Error A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

How is “Tracking Error” Used in Practice?

Ein niedriger Tracking Error zeigt an, dass die Renditen des Portfolios eng dem Benchmark folgen, ein hoher Wert deutet auf aktives Management hin.

Certification Exam Relevance

CFAACCAFRM

Who Needs to Know This Term?

  • Financial Analysts
  • Bankers
  • Traders

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Frequently Asked Questions

Was ist Tracking Error?

A measure of the standard deviation of the difference between a portfolio's returns and its benchmark's returns, indicating active management risk.

Where can I learn this term for free?

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