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FI: reading 19, los "discuss criteria for selecting a benchmark and justify the selection of a benchmark"

Hi all,

Long time lurker, first time poster.

In the CFAI text, chapter 19, the “benchmark selection” section is not very clear to me.

Is it enough to remember the SAMURAI mnemonic? 

Anything else?

thanks

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This one is pretty easy..

Valid benchmarks should be unambiguous, investable, measurable, appropriate, reflective of current investment opinions, specified in advance, and accountable.

You might be asked to explain why each passes the test.

- XYZ benchmark is measurable because…

- XYZ is investable because…

- XYZ is specified in advanced because…

You might be asked why the specific benchmark doesnt pass the test.. 

- XYZ is not investable because…

You just spelled out his SAMURAI mnemonic….

Agreed; sufficient to know your mnemonic and the WHY behind each.

Thank you very much for your replies.