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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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