Explain why backward-looking tracking error has limitations for estimating a portfolio's future tracking error
What will be an ideal response?
A portfolio's backward-looking tracking error is computed based on actual active returns and reflect the portfolio manager's decisions during the observation period with respect to the factors that affect tracking error. Consequently, one limitation with using backward-looking tracking error in bond portfolio management is that it does not reflect the effect of current decisions by the portfolio manager on the future active returns and hence the future tracking error that may be realized. Another limitation is that the backward-looking tracking error will have little predictive value and can be misleading regarding portfolio risks going forward.
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When you compile a list of acceptable outcomes, you will probably have a better chance of gaining something out of the negotiation, even if it’s not the first thing that you wanted. This is considered which strategy for integrative bargaining?
A. separate the people from the problem B. focus on positions, not interests C. generate a variety of possibilities D. insist on some fair standard
When a labor union opposes negotiations with foreign companies because of fears that domestic jobs will be lost, this exemplifies the influence of
A. external stakeholders. B. ideology. C. relative bargaining power. D. the immediate context.
Which of the following best describes costs assigned to the product under the variable costing method?Direct labor (DL)Direct materials (DM)Variable selling and administrative (VSA)Variable manufacturing overhead (VOH)Fixed selling and administrative (FSA)Fixed manufacturing overhead (FOH)
A. DL, DM, VOH, and FOH. B. DL, DM, VSA, and VOH. C. DL, DM, and VOH. D. DL, DM, FSA, and FOH. E. DL and DM.
What action would the management take if it wants to gain more ownership control of the firm?
A. Issue more growth stocks B. Issue more common stock to the public C. Repay portions of its loans D. Repurchase shares of common stock E. Pay cumulative dividends to preferred stocks