关于statement 2

问题如下：

To satisfy Winthrop’s benchmark and security selection specifcations, the equity index benchmark Tong selects should be:

选项：

small capitalization with a core tilt

large capitalization with a value tilt

mid-capitalization with a growth tilt

解释：

To address Winthrop’s concerns (sector diversifcation, liquidity, risk,dividend yield, P/E, and P/B), the benchmark should consist of large-capitalization stocks with a value tilt. A large-capitalization index contains the largest-cap stocks, which tend to have the highest liquidity. Value stocks tend to exhibit high dividend yields and low P/E and P/B ratios.
A is incorrect because small-capitalization stocks tend to be riskier than large-capitalization stocks. Winthrop has a preference for low-beta (low-risk) stocks.
C is incorrect because a growth index will not address Winthrop’s preference for a low P/E. Growth stocks exhibit such characteristics as high price momentum, high P/Es, and high EPS growth