TY - JOUR T1 - Practical Applications of How Much Error Is in the Tracking Error: <em>The Impact of Estimation Risk on Fund Tracking Error</em> JF - Practical Applications SP - 1 LP - 4 DO - 10.3905/pa.2015.3.1.116 VL - 3 IS - 1 AU - Artemiza Woodgate AU - Andrew F. Siegel A2 - Mack, Barbara J. Y1 - 2015/07/31 UR - https://pm-research.com/content/3/1/1.12.abstract N2 - How Much Error Is in the Tracking Error: The Impact of Estimation Risk on Fund Tracking Error Artemiza Woodgate Andrew F Siegel Evaluating portfolio performance through comparison with benchmarks is a classic technique in modern finance. However, biases can impact expectations on excess return and tracking error, particularly in portfolios constructed using mean-variance optimization.In this report, Artemiza Woodgate, a Senior Research Analyst at Russell Investments , and Andrew Sieg el, the Grant I. Butterbaugh Professor at the University of Washington’s Foster School of Business , tell us how to combat statistical errors in performance analysis and describe their approach to reducing the influence of noisy estimates. ER -