Indexing of Bond Portfolios Is Difficult Because

question 28

Multiple Choice

Indexing of bond portfolios is difficult because

• A) the number of bonds included in the major indexes is so large that it would be difficult to purchase them in the proper proportions.
• B) many bonds are thinly traded, so it is difficult to purchase them at a fair market price.
• C) the composition of bond indexes is constantly changing.
• D) All of the options are true.

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Definitions:

Blind

The condition of lacking visual perception due to physiological or neurological factors.

Cerebral Artery

A blood vessel in the brain that supplies oxygenated blood to specific parts of the cerebral cortex and other brain structures.

Temporal

Relating to time or denoting the temples of the skull.

Posterior Cerebral Artery

A blood vessel at the back of the brain that supplies oxygen-rich blood to the occipital lobe, important for visual processing.