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An investor purchases 1000 shares of each of the stocks in a price-weighted index at their closing prices ( ignore transaction costs). On a total
An investor purchases 1000 shares of each of the stocks in a price-weighted index at their closing prices ( ignore transaction costs). On a total return basis, if the index stocks remain the same, this portfolio will:
A. Perform exactly like the index over time
B. Outperform the index overtime
C. Underperform the index overtime.
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