[resolved] Equity Topic Test "Goldsboro" - Q3 Equity Style

CFA Level III Equities
#1

The CFAI Topic Test “Goldsboro” has a question on identifying the investment style (value, growth, market) and displays a chart with the company P/E, dividend yield, etc alongside the index (STI) and exchange (STX). The question should be straight forward because the portfolio almost exactly matches the index straight down the list. Right above the chart, there is a short note that the index is a value weighted index of securities selected from the exchange.

My thought process was the portfolio matches the index which is defined as value weighted, should be value. The answer key says its market because it matches the index. Can anyone cast light on what Im missing here?

#2

If the index is a market portfolio, and your portfolio matches the index, then a=c.

If you mean why isn’t it a value style index because it’s value weighted, then these are completely two different things.

#3

Thats exactly what I meant… its one thing to miss that going too fast, a whole other to get stuck and post in a forum asking about it without catching the mistake myself haha

Thanks!