Question
The first ever Shari'ah screening filter was developed in Malaysia by RHB. Since then there have been various methodologies developed by Shari'ah scholars to differentiate
The first ever Shari'ah screening filter was developed in Malaysia by RHB. Since then there have been various methodologies developed by Shari'ah scholars to differentiate between investment in shares that are considered to be Shari'ah compliant and non- Shari'ah compliant.
a. Explain the quantitative filters that are applied by the Dow Jones Islamic Market Index and provide a detailed rationale of why each filter is included.
b. Analyze and explain the differences between the commonly used filters, like the one applied by Dow Jones, with the Shari'ah screening methodology applied by the SAC of Bursa Malaysia?
c. The Dow Jones Islamic Index use the 33% rule in their quantitative filters. Where did this rule originate from? Explain your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Islamic Investment Banking Dow Jones Islamic Market Index is a popular international index that was developed by Dow Jones and the company well known for the Dow Jones Industrial Average The indices w...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started