Which of the following is NOT a use of security market indicator series?
A) to use as a benchmark of individual portfolio performance
B) to develop an index portfolio
C) to determine factors influencing aggregate security price movements
D) to use in the measurement of systematic risk
E) to use in the measurement of diversifiable risk

Question

Quizplus · Accepted Answer

Security market indicator series are not used in the measurement of diversifiable risk. Diversifiable risk can be minimized through diversification of investments in different assets or securities. Security market indicators are used to determine factors influencing aggregate security price movements, to measure systematic risk, to use as a benchmark of individual portfolio performance, and to develop an index portfolio.

Which of the Following Is NOT a Use of Security