n NISM Certifications
MF MF Foundations
Medium

Which is the most appropriate measure of evaluating how closely an index fund is tracking its benchmark?

Practice question from MUTUAL FUND SCHEME PERFORMANCE Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Treynor ratio

  2. Tracking error

    Correct answer

  3. C

    Total Expense Ratio (TER)

  4. D

    Assets Under Management (AUM)

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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