ESSEN OF INVESTMENTS CONNECT AC
ESSEN OF INVESTMENTS CONNECT AC
11th Edition
ISBN: 9781266650314
Author: Bodie
Publisher: MCG
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Chapter 18, Problem 7WM
Summary Introduction

To determine:

To determine if we are interested in any of the selected funds. Also to determine how the fund choices differ for various clients.

Introduction:

Best fit and the standard results are helpful for the investors.

The standard index helps investors to plan the portfolio funds diversification. For similar funds, the best fit index helps in comparing the betas and alphas.

Alpha is a measure of performance which gauges the investment performance against market index.

Beta measures the broad market overall risk or volatility. While from passive index investing, beta can be obtained, alpha is the result of active investing.

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