The policy statement may include a ____ against which a portfolio's or portfolio manager's performance can be measured.
A) Milestone
B) Benchmark
C) Landmark
D) Reference point
E) Market pair

Question

Quizplus · Accepted Answer

A benchmark is a standard or measure against which something is compared or assessed. In this case, the policy statement may include a benchmark against which the portfolio's or portfolio manager's performance can be measured. A benchmark could be a specific index, such as the S&P 500, or another investment portfolio with similar characteristics. A milestone, landmark, reference point, or market pair would not provide an appropriate standard for performance measurement.

The Policy Statement May Include a ____ Against Which a Portfolio's