ABCD Asset Management is going to pick a new benchmark for their investment-grade fixed income fund. The

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ABCD Asset Management is going to pick a new benchmark for their investment-grade fixed income fund. The investment banking arm of ABCD’s parent company, ABCD Capital, publishes an investment-grade bond index which includes Treasuries, agency debt, and mortgages. Name at least two of the principles of a good index that ABCD Asset Management would violate if they chose ABCD Capital’s investment-grade bond index as their benchmark and give the reasons why those principles might be violated.

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The Theory And Practice Of Investment Management

ISBN: 9780470929902

2nd Edition

Authors: Frank J Fabozzi, Harry M Markowitz

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