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Performance Evaluation
Performance Evaluation
Easy
A US mid-cap value equity manager is benchmarked against the Russell 2000 Growth Index. The manager argues this benchmark is inappropriate. Which property of a valid benchmark is most clearly violated?
A
Appropriateness, because the benchmark doesn't match the manager's investment style or market cap focus
B
Measurability, because the Russell 2000 Growth returns cannot be calculated in a timely manner
C
Investability, because the Russell 2000 Growth index cannot be replicated
D
Accountability, because the manager doesn't accept the benchmark
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Tags
#benchmark-selection
#appropriateness
#valid-benchmark
#style-mismatch
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CFA Level III — Performance Evaluation Practice Question | AcadiFi | AcadiFi