n NISM Certifications
XXI NISM Series XXI-A
Medium

The main purpose of a 'benchmark index' in portfolio management is to:

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Measure the absolute return of the portfolio

  2. Provide a standard to evaluate portfolio performance

    Correct answer

  3. C

    Determine the fund’s expense ratio

  4. D

    Set the minimum return target

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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