Alan Alexander is in the process of constructing an equity market index constituting five securities that share similar risk and return profiles. Alan is pondering over which index weighting method to use for the index.

Ileana Johns, Alan's senior colleague, has little experience in security market indices. However, she suggested the following options to Alan:

Equalweighted index where each constituent security is given an identical weight in the index at inception.

Sector index weighting method made of securities representing a particular economic sector that shares identical risk and return profiles.

Floatadjusted marketcapitalization weighting where securities are held in proportion to their value in the target market.

Alan is keen to avoid frequent rebalancing of the index. For the index weighting process, Alan is most likely to adopt:

Group of answer choices

The sector index weighting method.

The equal weighting method.

The floatadjusted marketcapitalization weighting method.