Composite Stock-Bond Indexes

Composite Stock-Bond Indexes - 5-1Composite Stock-Bond...

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Unformatted text preview: 5-1Composite Stock-Bond IndexesBeyond separate stock indexes and bond indexes for individual countries, a natural step is a composite series that measures the performance of all securities in a given countryThis allows examination of benefits of diversification with a combination of asset classes such as stocks and bonds in addition to diversifying within the asset classes of stocks or bonds5-2Composite Stock-Bond IndexesMerrill Lynch-Wilshire U.S. Capital Markets Index (ML-WCMI)Market-value weighted index measures total return performance of the combined U.S. taxable fixed income and equity marketsCombination of Merrill-Lynch fixed-income indexes and the Wilshire 5000 common-stock indexTracks over 10,000 stocks and bonds5-3Composite Stock-Bond IndexesBrinson Partners Global Security Market Index (GSMI)Includes:U.S. stocks and bondsNon-U.S. equitiesNon-dollar bondsAllocation to cashMatches a typical U.S. pension fund allocation policyClose to the theoretical market portfolio of 5-4...
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This note was uploaded on 01/24/2012 for the course FIN 4360 taught by Professor Davidbray during the Spring '12 term at Kennesaw.

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Composite Stock-Bond Indexes - 5-1Composite Stock-Bond...

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