When Selecting a Benchmark,it Is Important to Match the Security

question 22

Multiple Choice

When selecting a benchmark,it is important to match the security or portfolio that will be evaluated to securities:

• A)that have an opposing style.
• B)that have identical factor betas for all factors in the pricing model being utilized.
• C)that closely mimic the overall market.
• D)with the same PE ratios.
• E)of similar style that are available for purchase.

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Definitions:

Character Strengths

Positive traits reflected in thoughts, feelings, and behaviors that are considered virtues and contribute to an individual's fulfillment.

Positive Psychology

Positive Psychology is a branch of psychology focused on the study of what makes life most worth living, emphasizing positive human development, strengths, and flourishing.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Compassion

A deep awareness of and sympathy for another's suffering, coupled with the desire to alleviate that suffering.