The Major Concern That Has Been Raised with Respect to the Weighting

question 5

Multiple Choice

The major concern that has been raised with respect to the weighting of countries within the EAFE index is

• A)currency volatilities are not considered in the weighting.
• B)cross-correlations are not considered in the weighting.
• C)inflation is not represented in the weighting.
• D)the weights are not proportional to the asset bases of the respective countries.
• E)None of the options

---

Definitions:

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources, including all non-owner changes in equity.

Unrealized Gains

Increases in the value of an asset that are not realized through a sale.

Property

A possession or asset that may be owned by an individual, business, or organization, including tangible items like buildings or land and intangible items like intellectual property.