An equity fund manager is considering a market index as the benchmark for his portfolio, and has the following preferences:
- the index should have a contrarian effect;
- shares held by controlling shareholders should be included;
- dividends should be included in the weighting of constituent securities; and
- the weights of constituent securities should not be arbitrarily determined by the index provider.
Which of the following weightings of indexes best meets the fund manager's preferences? | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An equity fund manager is considering a market index as the benchmark for his portfolio, and has the following preferences:
the index should have a contrarian effect;
shares held by controlling shareholders should be included;
dividends should be included in the weighting of constituent securities; and
the weights of constituent securities should not be arbitrarily determined by the index provider.
Which of the following weightings of indexes best meets the fund manager's preferences?