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CFA Level 2
Portfolio Management

Benchmark Selection for Large-Cap Equity Portfolio

Very Easy Performance Evaluation Benchmark Selection

In portfolio management, choosing an appropriate benchmark is crucial for performance evaluation. A benchmark serves as a reference point against which the performance of an investment portfolio can be measured. Different types of benchmarks may be suited for different investment strategies. Consider the following scenarios:

A portfolio manager is evaluating a equity portfolio that consists of large-cap U.S. stocks. Which of the following would be the most appropriate benchmark for this portfolio?

Hint

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