Question: There are three main methods that are used to construct equity market indices. For any two of these methods, briefly outline the process involved in
There are three main methods that are used to construct equity market indices. For any two of these methods, briefly outline the process involved in constructing the respective indices and compare these two methods. In your comparison, clearly outline one of the main advantages of one of the methods relative to the alternate method of index construction. Note that if more than two methods are examined, only the first two will be marked.
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