He has three options in front of him:Stocks of Company X, which gives him an expected return (Mean) of 15 % with  volatility (S.

Question

He has three options in front of him:Stocks of Company X, which gives him an expected return (Mean) of 15 % with  volatility (S.D) of 11%.Exchange Trade Fund (ETF) which offers an expected return (Mean) of 14%  with volatility (S.D) of 8%.Bonds with an expected return (Mean) of 4% with 3% volatility (S.D). Treating you as a financial expert, suggest a most suitable investment for the person  using Coefficient of Variation.​

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Raelynn 3 months 2021-07-31T15:02:17+00:00 1 Answers 0 views 0

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    2021-07-31T15:03:25+00:00

    Tracking error is the divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. This is often in the context of a hedge fund, mutual fund, or exchange-traded fund (ETF) that did not work as effectively as intended, creating an unexpected profit or loss.

    Tracking error is reported as a standard deviation percentage difference, which reports the difference between the return an investor receives and that of the benchmark they were attempting to imitate.

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