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CFA Level 2
Portfolio Management

Benchmark Selection for Growth-focused Mutual Fund

Hard Performance Evaluation Benchmark Selection

In order to assess the performance of a newly established mutual fund that invests in a diversified portfolio of large-cap U.S. equities, the fund manager has decided to select an appropriate benchmark. The mutual fund has a focus on growth stocks, particularly in the technology sector.

The manager considers various benchmark options to effectively evaluate the fund's performance. She is particularly interested in a benchmark that reflects the characteristics and investment style of the fund to ensure an accurate comparison.

Which of the following benchmarks would be the most appropriate for evaluating the mutual fund's performance?

Hint

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Correct7.6K
% Correct87%