Which one or ones of the following statements are correct about a value-weighted index? (This is...
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Which one or ones of the following statements are correct about a value-weighted index? (This is a multiple-answer question.) A portfolio that replicates a value-weighted index does not need to be rebalanced when the prices of its constituent stocks change. A portfolio that replicates a value-weighted index is consistent with a momentum style portfolio strategy. Rebalancing a portfolio that replicates a value-weighted index results in buying losers and selling winners. For a portfolio that replicates a value-weighted index, the absence of rebalancing results in overweighting in stocks whose prices have decreased. Which one or ones of the following statements are correct about a value-weighted index? (This is a multiple-answer question.) A portfolio that replicates a value-weighted index does not need to be rebalanced when the prices of its constituent stocks change. A portfolio that replicates a value-weighted index is consistent with a momentum style portfolio strategy. Rebalancing a portfolio that replicates a value-weighted index results in buying losers and selling winners. For a portfolio that replicates a value-weighted index, the absence of rebalancing results in overweighting in stocks whose prices have decreased.
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