The Best Index to Assess the Performance of a Portfolio

question 118

Multiple Choice

The best index to assess the performance of a portfolio diversified among several asset classes such as stocks, bonds and real estate is

• A) the Lipper Index.
• B) the NYSE Composite Index.
• C) the Value Line Index.
• D) No suitable index exists.

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Definitions:

Formal Operational Stage

A phase in Jean Piaget's theory of cognitive development where individuals (around age 11 and older) gain the ability to think abstractly and reason logically.

Cause and Effect

The relationship between events where one is the result of the other or others, a fundamental concept in identifying reasons behind certain outcomes.

Helicopter Parents

Describes parents who take an overly protective or excessive interest in the life of their child or children, often intruding in decisions and experiences best handled autonomously by the child.

Decision-making Skills

The ability to select between two or more alternatives to reach the best outcome in the shortest time.