Reading 56: Security Market Indices-LOS g 习题精选 2011, investment, relative, security, manager

1215

Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 56: Security Market Indices

LOS g: Discuss uses of security market indices.

 

 

The most appropriate benchmark for measuring the relative performance of an investment manager is:

A) an index that closely matches the manager’s investment approach.

B) a broad market index.

C) the risk-adjusted return on the market portfolio.

---

 

An index chosen as a benchmark for an investment manager’s performance should include securities in the manager’s investment universe. For example, the performance of an emerging market bond fund manager should be measured relative to the performance of an emerging market bond index.