Simple Schweser Investment Benchmark Question
Very conceptual question:
The benchmark has the following characteristics:
1. It uses the top 10% of U.S. portfolio managers each year in each asset class a the benchmark for toptech managers;
2. TopTech is very careful to make sure that its managers are familiar with the securities in each benchmark asset class;
3. the identities and weights of various securities in the toptech benchamrk are clearly defined
The toptech benchmark contains all the following properties of a valid benchmark except
A. It is investable
B. it is unambiguous
C. it is reflective of current investment opinion
Should this be A or B? I would think BOTH A and B are violated. It has to be unambiguous to be investable. And if it is investable it must be unambiguous. |