Is there an LOS that states we need to know how to calculate this? I noticed on Page 361, Reading 27 of CFAI, Question #1 they ask us to calculate it. I can’t for the life of me figure out how they did it as the solution in the back doesn’t show the full calculation method, unless I’ve missed something obvious.
the tracking risk is the standard deviation of (the sum of squared deviations/n-1) I remember doing this one, but I don’t have it in front of me. I think it was .004? or .04 anyway, take the square root of (.04/n-1) and you should get the tracking risk
There is an error that they correct in their errata. SanFran is close (what a memmory!) take the square root of .4/5 to get .2828
Fair enough… bu don’t think it’s anywhere in the LOS that you need to actually calculate it… or is everyone assuming that it’s fair game for the exam?
might as well. there’s not really that much to it.
Can someone point me to where in Schweser this is covered?
LOS 31.b SS10 Book 3 Page 123 Don’t think you need to calculate it.