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Basic Question 3 of 14

_____ refers to adjusting the weights of the constituent securities in an index.

A. Rebalancing
B. Reconstitution
C. Reindexing

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Edward Liu

Edward Liu

Learning Outcome Statements

describe the choices and issues in index construction and management

compare the different weighting methods used in index construction

calculate and analyze the value and return of an index given its weighting method

describe rebalancing and reconstitution of an index

CFA® 2025 Level I Curriculum, Volume 3, Module 2.