Client the nature of a benchmark portfolio

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Suppose you are a portfolio manager for an institutional investment company. Your client asks you the following questions about how your performance will be measured. You decide a benchmarked portfolio should be introduced to the client.

a. Explain to your client the nature of a benchmark portfolio. (No need for a full paragraph here.

b. Why is the weighting of securities in the benchmark portfolio important? Explain the nature of price-, value-, and equally-weighted benchmark portfolios. Which weighting is best?

Reference no: EM133068309

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