Indices and the Construction of Benchmarks
Managing and analyzing a portfolio against a given benchmark require detailed knowledge of the latter’s composition, and an attribution analysis for a portfolio typically requires selecting an appropriate benchmark. This chapter provides an overview of benchmarks commonly used in portfolio management and analysis. Some particularly important indices are described, and a number of further indices are given in tabular form. The criteria for selecting an index are also described.
Portfolio, Benchmark, Attribution analysis, Market index, Index selection
11.1 Basic Concepts
Both managing and analyzing a portfolio against a given benchmark require the detailed knowledge of the latter’s ...