follows: Portfolio Return (bps) Benchmark Portfolio Return (bps) Day 1 34 30 Day 2 -89 -87 Day 3

108 102 Day 4 70 70 What is the tracking error over the four day period?

A. 2 bps

B. 10 bps

C. 2.39 bps

D. 3.16 bps

Please solve, I am not getting any of the answers. I am getting s.d. of Portfolio as 73.92 bps and that of the benchmark as 71.53.

calculating tracking error by variance formula tracking error I am getting is 102.86. There is no co-variance term right ?