low level of assets啥意思

问题如下：

Method 2’s portfolio construction process is most likely:

选项：

A.

optimization.

B.

full replication.

C.

stratified sampling.

解释：

C is correct. Stratified sampling methods are most frequently used when a portfolio manager is tracking an index that has a large number of constituents, or when managing a relatively low level of assets. Brokerage fees can become excessive when the number of constituents in the index is large.

A is incorrect because optimization does not involve simple techniques. Optimization requires a high level of technical sophistication, including familiarity with computerized optimization software or algorithms, and a good understanding of the output.

B is incorrect because full replication occurs when a manager holds all (not fewer) securities represented by the index in weightings that closely match actual index weightings. Full replication techniques require that the mandate’s asset size is sufficient and that the index constituents are available for trading. Full replication can create significant brokerage commissions when the index is large.