I answered incorrect on the first. Frequent free float adjustments means it is harder to track the index and I guess that if there are NO adjustments it would then be fairly easy…
I agree with Gus…and since he got a 90+ on the mock, I would go with his credabilty.
Lol, thanks buddy…
first was incorrect - i work with this stuff
Gus Hansen Wrote: ------------------------------------------------------- > I answered incorrect on the first. > > Frequent free float adjustments means it is harder > to track the index and I guess that if there are > NO adjustments it would then be fairly easy… Did you read V.4 p.337-339? Tracking error was tremendously volatile prior to float adjustment. Float adjustment is now widespread, at least in part, expressly to make an index more trackable. The issue of frequency of adjustments is out of scope. The text, however, does not explicitly say what the managers “wanted”, if that is indeed how the question was phrased.
i thought it was incorrect also. it said the manager wanted to use a free float adjusted index to better track it or something like that