标题: international benchmark quiz [打印本页] 作者: ASSet_MANagemen 时间: 2011-7-11 19:45 标题: international benchmark quiz
which comment is false?
A reconstitution effects are detrimental to performance , the underperformance shows up in conventional performance evaluation
B crossing aviods transaction costs except for a small fee paid to investment company doing the cross
C MSCI decided it would be more consistent to have one capitalization coverage stanard for all countries rather than cover a larger percentage of capitalization in the more liquid countries作者: Valores 时间: 2011-7-11 19:45
A
NO EXCUSES作者: bpdulog 时间: 2011-7-11 19:45
Where are you getting these questions from? This is pretty absurd, where is C even mentioned?
NO EXCUSES作者: NakedPuts2011 时间: 2011-7-11 19:45
bpdulog Wrote:
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> Where are you getting these questions from? This
> is pretty absurd, where is C even mentioned?
All his questions are statements right from the book. This is international benchmarks end of book 4. Last one was corporate governance. There was an entire reading discussing the biggest index change ever. Msci moving from percent cap to free float.作者: liangfeng 时间: 2011-7-11 19:45
reading 34作者: Iginla2011 时间: 2011-7-11 19:45
"Reconstitution effects are detrimental to performance, although the underperformance does not show up in conventional performance evaluation as a negative alpha because the reconstitution effect affects the benchmark as well as the investor’s actual portfolio."
It affects the benchmark itself so we can't see it in a conventional performance evaluation.
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The trade-Offs in Constructing International Indexes:
BuFfaLO: Buffalo Sabres
Breadth vs Investability.
precise Float adjustment vs transaction costs from rebalancing.
Liquidity and crossing opportunities vs index reconstitution effects.
Objectivity and transparency vs judgment.
