Comparison of Winthrops Portfolio to Possible Benchmarks

Statistic	Winthrop Portfolio	S&P 500	Russell 1000	Russell 3000
Average price-to-book ratio	1.95	2.06	2.13	2.09
Beta relative to the benchmark	---	1.03	0.85	0.92
Median market capitalization (U.S. dollar billions)	5.60	7.98	3.28	0.59
Volatility (annual)	12.0%	18.7%	10.3%	10.4%
Tracking error relative to the benchmark	---	1.87%	4.72%	2.07%
Dividend yield	1.86%	2.45%	2.08%	1.76%

1. from among the three possible benchmarks presented in Exhibit 1, the highest quality benchmark for Winthrops portfolio. Justify your recommendation with two reasons, using information provided in Exhibit 1.

Assume the following is from Winthrop Foundation's portfolio: Exhibit 1 Comparison of Winthrop's Portfolio to Possible Benchmarks Statistic Winthrop Portfolio Average price-to-book ratio 1.95 Beta relative to the benchmark Median market capitalization (U.S. dollar billions) 5.60 Volatility (annual) 12.0% Tracking error relative to the benchmark Dividend yield 1.86% S&P 500 2.06 1.03 7.98 18.7% 1.87% 2.45% Russell 1000 2.13 0.85 3.28 10.3% 4.72% 2.08% Russell 3000 2.09 0.92 0.59 10.4% 2.07% 1.76% A. from among the three possible benchmarks presented in Exhibit 1, the highest quality benchmark for Winthrop's portfolio. Justify your recommendation with two reasons, using information provided in Exhibit 1. Assume the following is from Winthrop Foundation's portfolio: Exhibit 1 Comparison of Winthrop's Portfolio to Possible Benchmarks Statistic Winthrop Portfolio Average price-to-book ratio 1.95 Beta relative to the benchmark Median market capitalization (U.S. dollar billions) 5.60 Volatility (annual) 12.0% Tracking error relative to the benchmark Dividend yield 1.86% S&P 500 2.06 1.03 7.98 18.7% 1.87% 2.45% Russell 1000 2.13 0.85 3.28 10.3% 4.72% 2.08% Russell 3000 2.09 0.92 0.59 10.4% 2.07% 1.76% A. from among the three possible benchmarks presented in Exhibit 1, the highest quality benchmark for Winthrop's portfolio. Justify your recommendation with two reasons, using information provided in Exhibit 1