Index methodologies

The mandate of Pool 2 also consists of two primary goals:

** A goal that the overall stock portfolio should consist of mature companies that have stable net incomes and high dividend yields*
** A goal of expressing strong views on many major corporate issues through proxy voting*

Which of the following index methodologies is most appropriate to use as a benchmark for the overall stock portfolio described in Pool 2?

1. Factor based
2. Capitalization weighted
3. Fundamentally weighted

I think C - Fundamendally weighted is also option here, can anyone explain?


Where did you find this question? Very confusing. The fact they said high dividend yields made me think fundamentally weighted. The mature companies bit made me think of maybe cap weighted, nothing in the text made me think of factor based.

One could argue the value risk factor i.e. specifically the growth factor that would show mature companies but stable div yields, not always certain.

This is from CFA ecosystem