Explain two different weaknesses of using each of the three benchmarks to measure the performance of a portfolio. Your response must contain a total of six different weaknesses.

QUESTIONS ON INVESTMENT ANALYSIS AND PORTFOLIO MANGEMENT

Increasing the portfolio to a level that will fund her retirement living expenses, which she estimates to be $257,000 for the first year of her retirement.

Building her ‘‘dream house’’ in five years, the cost of which (including land) has a present value of $535,000.

Market index
Benchmark custom portfolio
Median of the manager universe

Explain two different weaknesses of using each of the three benchmarks to measure the performance of a portfolio. Your response must contain a total of six different weaknesses.

Market index
Benchmark custom portfolio
Manager universe

Describe three properties that a valid benchmark should have.