A Portfolio Manager Uses Two Different Proxies for the Market

question 8

Multiple Choice

A portfolio manager uses two different proxies for the market portfolio, the S&P 500 index and theMSCI World index. Differences in the manager's portfolio performance resulting from the differentmarket portfolios is referred to as

• A)The size effect
• B)The market effect
• C)Measurement error
• D)Benchmark error
• E)Manager's performance error

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Definitions:

Voting Rights

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Redeemers Coalition

A political alliance in the post-Civil War Southern United States that sought to oust the Radical Republicans, end Reconstruction, and restore white supremacy.

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