Explain that ml high-yield bond index was more correlated

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1. How would you explain that the ML High-Yield Bond Index was more highly correlated with the NYSE composite stock index than the ML Aggregate Bond Index?

2. Assuming that the mandate to a portfolio manager was to invest in a broadly diversified portfolio of U.S. stocks, which two or three indexes should be considered as an appropriate benchmark? Why?

Reference no: EM13924521

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