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When Selecting a Benchmark,it Is Important to Match the Security

Question 22

Multiple Choice

When selecting a benchmark,it is important to match the security or portfolio that will be evaluated to securities:


A) that have an opposing style.
B) that have identical factor betas for all factors in the pricing model being utilized.
C) that closely mimic the overall market.
D) with the same PE ratios.
E) of similar style that are available for purchase.

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