Seven Properties of a Valid Benchmark
- Specified in advance
- Appropriate
- Measurable
- Unambiguous
- Reflective of (the manager's) current investment opinion
- Accountable (owned)
- Invest-able
Seven Benchmark Types
- Absolute
- Manger universes
- Broad market indices
- Style indices
- Factor-model-based
- Returns-based
- Custom security-based
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