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CFA Level 3
Equity Portfolio Management

Replication Methods in Passive Equity Investing

Very Easy Passive Equity Investing Replication Methods

Consider the following scenario: An investment manager is seeking to replicate the performance of a broad market index, such as the S&P 500. To achieve this, the manager opts for a passive investing strategy that aims to mirror the index as closely as possible.

Which replication method is the manager most likely to employ in order to effectively emulate the performance of the index?

Hint

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