1.Use the following statements to answer questions 19-20. Statement 5: Stratified sampling is more costly than full replication as an indexing strategy. Statement 6: Overcollateralization is an example of an external credit enhancement. Statement 7: With a single liability, proper LDI could be just purchasing a zero-coupon bond with the same maturity. Statement 8: Excess return is the bonds spread over adjusted for the spread changes and expected losses. Which statement is correct?

A. Statement 5 B. Statement 6 C. Both statement 5 and 6 D. Neither statement