19-EquityPort Page 557 Friday, March 12, 2004 12:40 PM
Equity Portfolio Management 557
EXHIBIT 19.2 Tracking Error versus the Number of Benchmark Stocks in the
Portfolio
Source: Exhibit 7.2 in Raman Vardharaj, Frank J. Jones, and Frank J. Fabozzi,
“Tracking Error and Common Stock Portfolio Management,” Chapter 7 in Frank
J. Fabozzi and Harry M. Markowitz (eds.), The Theory and Practice of Invest-
ment Management (New York: John Wiley & Sons, Inc., 2002), p. 171.