KIC000076 - , " , Tracking Error and Bond Portfolio...

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, Tracking Error and Bond Portfolio Strategies (continued) o Two Faces of Tracking Error Calculations computed for a portfolio based QIlI portfolio',.cnul aaive returns refI=: the portfolio manager's decllions during lhe eesevesico period. We c.all tI1Icking error .:.alcula1cd from observed active =Uf1l8 for. portfolio backward_looking rrockrng uror h is also clilJ~ the ex-pest uuoking errOl"and the letwJ traddng error, The portfolio ITIlt\8,gerneeds I forward-looking estimaie OftNU:;kih.s. errorto r~~ theponfolio risk going fo~ The way this is done in practice ii by using the $elViee5 ora commercial vendor or dWer fum thai has modeled the factors thai ltfWlhe tracking etTOf U$OCimed with the bond mari:!:'I inck:;,r that i~ the portfolio manager' Ii benclunalt. . Tbc:ge models tiC called mtlln-.facll)r n'sk modt/s """"",,'·r,,,,~_"""""""·_ ..,_.,_ Tracking Error and Bond Portfolio Strategies (continued) DTwo Faces of Tracking Error Given 8 manager's current portfolio
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KIC000076 - , " , Tracking Error and Bond Portfolio...

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