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CFA Level 3
Equity Portfolio Management

Index Construction for Technology Sector

Medium Passive Equity Investing Index Construction

As part of their investment strategy, the XYZ Investment Firm is developing an index fund designed to track the performance of the U.S. technology sector. They are considering different methods for constructing their index and evaluating various factors that influence its effectiveness.

In constructing their technology index, the firm must consider which of the following methodologies would lead to a more accurate representation of the sector's performance while minimizing potential biases.

Hint

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Correct2.7K
% Correct68%