Question: Which is correct about sampling in passive investment strategy? a. All securities in the index are purchased in proportion to weights in the index b.

Which is correct about sampling in passive investment strategy?

a. All securities in the index are purchased in proportion to weights in the index

b. Buys a representative sample of stocks in the benchmark index according to their weights in the index

c. This relies on historical correlations, which may change over time, leading to failure to track the index

d. Reinvestment of dividends is less difficult

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