The procedure in which portfolio performance evaluators design a relevant portfolio for comparison is called
A) custom benchmarking.
B) performance attribution.
C) box plotting.
D) ex post beta.

Question

Quizplus · Accepted Answer

Custom benchmarking is the process of designing a benchmark that matches the characteristics and composition of the portfolio being evaluated. This allows for a more accurate and relevant comparison of performance. Performance attribution involves breaking down the sources of a portfolio's returns, box plotting is a graphical representation of data, and ex post beta is a measure of a portfolio's volatility compared to a benchmark. None of these involve designing a relevant comparison portfolio like custom benchmarking does.

The Procedure in Which Portfolio Performance Evaluators Design a Relevant