Two Common Methods for Constructing a Bond Index Are

question 87

Multiple Choice

Two common methods for constructing a bond index are

• A) full replication and stratified sampling.
• B) partial replication and overall market approach.
• C) ETFs and High Yield sampling.
• D) multiple discriminant analysis and bond swaps.
• E) High Yield sampling and partial replication.

---

Definitions:

Business Judgment Rule

A principle of corporate governance that shields a corporation's board of directors from liability for decisions made in good faith, with due care, and in the best interests of the corporation.

Shareholder's Direct Suit

A legal action initiated directly by a shareholder against the corporation, typically for actions that have caused harm directly to the shareholder.

Right of Obedience

The obligation of a fiduciary or agent to act in accordance with the directives of the principal, provided these instructions are legal and ethical.

Preponderance of the Evidence

A standard of proof in civil cases, signifying that one side's argument is more likely true than not based on the evidence presented.