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Basic Question 3 of 14
_____ refers to adjusting the weights of the constituent securities in an index.
B. Reconstitution
C. Reindexing
A. Rebalancing
B. Reconstitution
C. Reindexing
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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.