The comparison universe is
A)a concept found only in astronomy.
B)the set of all mutual funds in the world.
C)the set of all mutual funds in the U.S.
D)a set of mutual funds with similar risk characteristics to your mutual fund.

Question

Quizplus · Accepted Answer

The comparison universe refers to a set of mutual funds that have similar risk characteristics as your mutual fund. This is important when analyzing the performance of a mutual fund and comparing it to its peers. Option A is incorrect because the comparison universe can be used in other fields besides astronomy. Option B and C are too broad and do not accurately describe the concept of the comparison universe.

The Comparison Universe Is