In order to measure the performance of an investment company, many studies use a ____ portfolio for comparison such as the S&P 500, a risk free asset, or an index.

Question

Quizplus · Accepted Answer

A benchmark is a standard against which the performance of an investment company can be measured. In this case, the study is looking for a portfolio that can be used for comparison, and a benchmark is the most appropriate choice. The S&P 500 is one example of a commonly used benchmark. The other choices (A, C, and D) do not fit the criteria as well as a benchmark would.

In Order to Measure the Performance of an Investment Company