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CFA Level 2
Portfolio Management

Benchmark Selection for Large-Cap Equity Portfolio

Easy Performance Evaluation Benchmark Selection

Jane, a portfolio manager at WealthGrowth Investments, manages a diversified portfolio primarily invested in large-cap US equities. She is assessing the performance of her portfolio and needs to select an appropriate benchmark to evaluate her returns accurately.

Jane considers three potential benchmarks:

- Option A: S&P 500 Index

- Option B: Russell 2000 Index

- Option C: NASDAQ Composite Index

Which benchmark should Jane choose to best evaluate the performance of her large-cap US equity portfolio?

Hint

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Correct7.9K
% Correct72%