CFA Practice Question

CFA Practice Question

Why do individual investors use security-market indicator series?
A. They are an accurate measure of returns earned by an investor over a given period.
B. They are a convenient proxy for following the variety of securities they own on a daily basis.
C. They are the underlying index for a variety of liquid financial futures.
Explanation: Indexes are not accurate measures of a specific investor's return unless the investor owns an exact replication of the index portfolio.

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