Question
What is not about full replication in passive portfolio managment? This helps ensure close tracking Buys a representative sample of stocks in the benchmark index
What is not about full replication in passive portfolio managment?
| This helps ensure close tracking | ||
| Buys a representative sample of stocks in the benchmark index according to their weights in the index | ||
| All securities in the index are purchased in proportion to weights in the index | ||
| Increases transaction costs, particularly with dividend reinvestment |
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Precalculus
Authors: Michael Sullivan
9th edition
321716835, 321716833, 978-0321716835
