equity question question, because, increase, correct, general

Dapper425

Transaction costs in general are higher for:
A) precise float adjustment and more popular indices.
B) precise float adjustment and less popular indices.
C) float adjustment bands and less popular indices.

Your answer: A was incorrect. The correct answer was B) precise float adjustment and less popular indices.

i thought that because more popular indices are more widely followed/used as a benchmark, adding the stock to the more popular indices can increase its price and make replicating the index more expensive

NakedPuts2011

here's another one:

A socially responsible portfolio tends to shun:
A) basic industries and technology stocks.
B) financial and energy stocks.
C) basic industries and energy stocks.

Your answer: B was incorrect. The correct answer was C) basic industries and energy stocks.

Socially responsible portfolios usually shun basic industries and energy stocks, which tend to be value stocks. This accounts for the bias towards growth stocks in socially responsible portfolios

why would it shun "basic industries"

Analti_Calte

hah that would make more sense, not the first time that i remember something right for the wrong reasons!