A tracking portfolio must perfectly match the cash flow of, Financial Management

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A tracking portfolio must perfectly match the cash flow of

1. A tracking portfolio must perfectly match the cash flow of the security being valued.

A. True

B. False

2. "Idiosyncratic risk" has..

A. a positive mean given every future state.

B. a zero mean given every future state.

C. a negative mean given every future state.

D. an unpredictable mean given every future state.

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Financial Management: A tracking portfolio must perfectly match the cash flow of

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Financial Management: A tracking portfolio must perfectly match the cash flow of

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