WITH RESPECT TO STRIPES’S COMMENT AT THE CONFERENCE ON INDEX WE...

37. - CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A
CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A

37. With respect to Stripes’s comment at the conference on index weighting methodologies, the

comment is:

A. correct.

B. incorrect, since float‐weighted indices tend to have higher portfolio turnover than other index

weighting methods.

C. incorrect, since overweighting of smaller companies is not a drawback of the float‐adjusted

weighting method.