NO.PZ202207040100000703
问题如下：
Which of the following index methodologies is most appropriate to use as a benchmark for the overall stock portfolio described in Pool 2?选项：
A.Factor based B.Capitalization weighted C.Fundamentally weighted解释：
SolutionA is correct. The value risk factor is associated with mature companies that have stable net incomes and high dividend yields. This factor-based method would create the most appropriate benchmark for the Pool 2 equity portfolio.
B is incorrect. Although cap-weighted index construction is widely used, it does not fit the description of the mandate for the overall portfolio in Pool 2.
C is incorrect. Fundamental weighting is an alleged improvement on cap-weighted indexing that uses a cluster of fundamentals, such as book value, cash flow, revenue, dividends, and employee count, as a basis for constituent weighting. These are not included in the description of the mandate for the overall portfolio in Pool 2.
看到stable net incomes and high dividend yields就想着是large-cap的特点，所以选了cap-weighted，请问错在哪里呀。
