QUIZ
Which of the following is not a use of security market indicator series? Select one.
Question 4 options:
| As a benchmark of individual portfolio performance | |
| To develop an index portfolio | |
| To determine factors influencing aggregate security price movements | |
| To use in the measurement of systematic risk | |
| To use in the measurement of diversifiable risk |
Question 5 (2 points)
A properly selected sample for use in constructing a market indicator series will consider the sample’s source, size, and which other factor? Select one.
Question 5 options:
| Breadth | |
| Average beta | |
| Value | |
| Variability | |
| Dividend record |
Question 6 (2 points)
It is essential in an investment policy statement that both the client and the portfolio manager agree on an appropriate benchmark portfolio.
Question 6 options:
| True | |
| False |
Question 7 (2 points)
The Standard & Poor’s 500 index is an example of a value-weighted index.
Question 7 options:
| True | |
| False |
Question 8 (2 points)
The most common way to test a portfolio manager’s performance is to compare the portfolio return to a benchmark.
Question 8 options:
| True | |
| False |
Question 9 (2 points)
The general purpose of a market indicator series is to provide an overall indication of aggregate market changes or movements.
Question 9 options:
| True | |
| False |
Question 10 (2 points)
A bond market index is easier to create than a stock market index because the universe of bonds is much broader than that of stocks.
Question 10 options:
| True | |
| False |
