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Assume you are managing an index fund that tracks the Nikkei 225. What would be your trading strategy to adjust your holdings around this reconstitution
Assume you are managing an index fund that tracks the Nikkei 225. What would be your trading strategy to adjust your holdings around this reconstitution of the index? Assume that you are required to have zero tracking error every day meaning that the return on your portfolio needs to match the return of the index every day. Be sure to list the following:
Group of stocks purchased
Date and time stocks purchased
Group of stocks sold
Date and time stocks sold
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