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

question 46

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 are correct.

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Definitions:

Cognitive Dissonance

A psychological state that occurs when an individual holds two or more contradictory beliefs, ideas, or values at the same time, often leading to discomfort and a drive to reduce the inconsistency.

Social Pressure

The influence that is exerted by society or a social group on an individual, encouraging conformity to social norms or expectations.

Mass Killing

The intentional and indiscriminate murder of a large number of people by individuals, groups, or state agents.

Publicized Celebrity Suicide

A widely broadcasted event of a famous individual taking their own life, often leading to increased public awareness and discussion on mental health.