Rebalancing在讲义的哪儿

问题如下：

Which of the following decisions most likely occurs as part of the index management phase of constructing and managing an index? 2

选项：

A.

How to identify which securities should be selected from the target market

B.

When to rebalance

C.

Which weighting method to use

解释：

One of the decisions that must be made during the management phase of constructing and managing an index is when to rebalance the index. Rebalancing is necessary to maintain the weight of each security consistent with the index’s weighting method.

A is incorrect. Identifying which securities to use from the target market is part of deciding how to construct an index and not part of deciding how to manage it.

C is incorrect. Choosing the method of weighting to be used in the index is part of the construction of an index process.