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When selecting a benchmark, it is important to match the security or portfolio that will be evaluated to securities: -that have an opposing style. -identical

When selecting a benchmark, it is important to match the security or portfolio that will be evaluated to securities:

-that have an opposing style.

-identical factor betas for all factors in the pricing model being utilized.

-that closely mimic the overall market. with the same PE ratios.

-of similar style that are available for purchase.

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