Question
Suppose you want to replicate the performance of several stock indexes, some of which are price weighted, others value weighted, and still others equally weighted.
Suppose you want to replicate the performance of several stock indexes, some of which are price weighted, others value weighted, and still others equally weighted. Your task is to create your own stock index that reects your long-term investment strategy. Describe your investment strategy. Using no more than 30 securities what is your index comprised of? You may use individual securities or ETFs to create your Life Index. How will you calculate its current level and annual return? Is there an existing asset or index that you will use as an objective standard to measure your success?
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