To Measure the Performance of a Fund, We Commonly Compare

question 67

Multiple Choice

To measure the performance of a fund, we commonly compare it with a comparable market benchmark. The most suitable benchmark for evaluating an Australian equity management fund is the____________ index.

• A) SBC 90- day bank bill
• B) Morgan Stanley World
• C) ASX 200
• D) Commonwealth bond

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Extraordinary Gains

Unusual and infrequent gains that are reported separately from regular income because they result from events that are not part of the company's usual business activities.

Footnote Disclosure

Additional information provided at the bottom of financial statements, offering more detail on specific figures or accounting policies.

Statement of Retained Earnings

A financial statement that outlines the changes in a company's retained earnings over a specific period.