The tracking error is measure by the standard deviation of


1. For the indexing bond portfolio managing strategy, the tracking error is measure by the standard deviation of the difference between the realized return of the portolio and the realized return of the index. True or False

2. If a bond portifilo manager anticapate the interest rates to go up, he may restructure the portfolio such that the portfolio has a shorter duration. True or False

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Financial Management: The tracking error is measure by the standard deviation of
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