2016-CFA-L3-classical-reading19

overview

a distinguish between benchmarks and market indexes;

b describe investment uses of benchmarks;

c compare types of benchmarks;

d contrast liability-based benchmarks with asset-based benchmarks;

e describe investment uses of market indexes;

f discuss tradeoffs in constructing market indexes;

g discuss advantages and disadvantages of index weighting schemes;

h evaluate the selection of a benchmark for a particular investment strategy.