Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 0 of 17
Security market indices are used ______
II. to construct index funds.
III. as inputs for technical analysis.
IV. to determine systematic risk.
I. as benchmarks for portfolio performance.
II. to construct index funds.
III. as inputs for technical analysis.
IV. to determine systematic risk.
User Contributed Comments 2
| User | Comment |
|---|---|
| Shaan23 | In the text a question states. Uses of Market indices do NOT include serving as: Answer - measure of systematic risk. Tricky - So its not a measure of systematic risk but is used to determine systematic risk. Solution goes on as Security markets indices are used as a proxy for measuring systematic risk but is NOT a measure of systematic risk |
| birdperson | @shaan23 -- to get your beta you run a regression with an index and a security & beta is measure of systematic risk |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe the fundamentals of compliance, including the recommendations of the GIPS standards with respect to the definition of the firm and the firm's definition of discretion
CFA® 2026 Level I Curriculum, Volume 6, Module 4.