Uses of Market Indexes

CFA Level I
#1

Some of the major uses of indexes include:
Proxies for asset classes in asset allocation models

Can someone kindly explain what this sentence means?

#2

You want to have data / model the returns and risk of large cap UK equities. You use the FTSE 100 as a proxy (easy substitute) for UK large cap equities and take the returns and risk of the index as a proxy for all UK large cap equity.

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#3

That helped. Thank you so much for the response.