- 老师，请问到底如何理解A stratified sampling approach，不是说这是最有效的方法，为什么在文中不推荐这个index？
- 这是协会online practice 51题
Ruelas also tells Maestre that he has considered moving to a passively managed bond portfolio. He is not convinced it is worth his or his staff’s time and effort to try to beat the broad market bond index. He is concerned, however, that it may be no less expensive either in time or transaction costs to replicate an index than to actively manage a portfolio. Maestre recommends a bond-indexing strategy.
What bond indexing strategy would Maestre least likely recommend?
- A stratified sampling approach
- An index mutual fund
- A synthetic strategy using a total return swap
Given that bonds typically trade in large blocks (in excess of USD1 million), attempting to build a bond index fund, even with a stratified sampling approach, would be difficult given the small size of the portfolio. Although mutual funds require payment of expenses, index funds benefit from economies of scale that are passed on to investors. A synthetic approach using a total return swap and holding cash would work. Although it would require finding a counterparty for a relatively small swap, conducting due diligence to control counterparty risk, and dealing with occasional rollover risk, it would still have lower costs than building the portfolio directly.
