Equity Investments MCQ - Equity Investments Section 1
47
An index that contains securities with more than 90% of the market‟s total
value is most likely a:
A broad market index tries to represent the entire market and usually
contains more than 90% of the market‟s total value.
Style indices represent groups of securities classified according to market
capitalization, value, growth, or a combination of these characteristics.
On the basis of market, fixed income indices are classified as global,
regional and country or currency zone.
Performance reporting is voluntary. Hedge funds with poorer
performance may be less likely to report their performance to the
database, which make the returns biased upwards.
