Reconstitution of a security market index reduces: A. Portfolio turnover. B. The need for rebalancing. C. The

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Reconstitution of a security market index reduces:

A. Portfolio turnover.

B. The need for rebalancing.

C. The likelihood that the index includes securities that are not representative of the target market.

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Related Book For answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 21, 2024 07:00 AM

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Reconstitution of a security market index reduces: A. Portfolio turnover. B. The need for rebalancing. C. The

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C is correct Reconstitution is the process by which index providers review the consti...View the full answer

Investments Principles Of Portfolio And Equity Analysis

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