rebalancing

问题如下：

Reconstitution of a security market index reduces:

选项：

A.

portfolio turnover

B.

the need for rebalancing

C.

the likelihood that the index includes securities that are not representative of the target market

解释：

Reconstitution is the process by which index providers review the constituent securities, re-apply the initial criteria for inclusion in the index, and select which securities to retain, remove, or add. Constituent securities that no longer meet the criteria are replaced with securities that do. Thus, reconstitution reduces the likelihood that the index includes securities that are not representative of the target market.