Measuring portfolio performance Flashcards
1
Q
What is the purpose of the three different types of benchmark.
A
- Target - measure performance
- Comparator - comparison of performance
- Constraint - limit portfolio construction
2
Q
What does ‘free float’ mean?
A
- Proportion of shares
- Traded on market
- Companies with less than min free float
- Have weighting reduced
3
Q
What might cause a company to enter/leave the FTSE 100 at a periodic rebalancing?
A
- IPO
- Delisting
- Merger
- Change in share price
