Question: When selecting a benchmark, it is important to match the security or portfolio that will be evaluated to securities: -that have an opposing style. -identical
When selecting a benchmark, it is important to match the security or portfolio that will be evaluated to securities:
-that have an opposing style.
-identical factor betas for all factors in the pricing model being utilized.
-that closely mimic the overall market. with the same PE ratios.
-of similar style that are available for purchase.
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