Multiple Choice
A portfolio manager uses two different proxies for the market portfolio, the S&P 500 index and theMSCI World index. Differences in the manager's portfolio performance resulting from the differentmarket portfolios is referred to as
A) The size effect
B) The market effect
C) Measurement error
D) Benchmark error
E) Manager's performance error
Correct Answer:

Verified
Correct Answer:
Verified
Q3: The fact that tests have shown the
Q4: Beta is a measure of:<br>A) Company specific
Q5: Recently you have received a tip that
Q6: The betas for the market portfolio
Q9: Using the S&P index as the proxy
Q10: Exhibit 8.3<br>Use the Information Below for
Q12: Exhibit 8.7<br>Use the Information Below for
Q13: What does W<sub>RF</sub> = -0.50 mean?<br>A) The
Q60: The "true" market portfolio is unknown.
Q86: The portfolios on the capital market line