prav_Cfa7

Fin , truong and serious are  correct .
The ans. is True.
The q does not talk about active return , but the only way one can reduce tracking risk is by cutting  active return . In any case that will reduce the overall portfolio tracking risk.
I can’t think of any scenario where the “highest tracking risk manager” even matters .
All that is important is that the weights ( allocations ) are unchanged and the active returns are un-correlated.