Standard and Poor's also publishes the S\&P Equal Weight Index, which is an equally weighted...
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Standard and Poor's also publishes the S\&P Equal Weight Index, which is an equally weighted version of the S\&P 500 . a. To maintain a portfolio that tracks this index, what trades would need to be made in response to daily price changes? b. Is this index suitable as a market proxy? a. To maintain a portfolio that tracks this index, what trades would need to be made in response to daily price changes? (Select the best choice below.) A. Buy winners and sell losers to maintain an equal investment in every stock. B. Sell winners and hold losers to maintain an equal investment in every stock. C. Hold winners and buy losers to maintain an equal investment in every stock. D. Sell winners and buy losers to maintain an equal investment in every stock. b. Is this index suitable as a market proxy? (Select the best choice below.) A. Yes, it is representative of aggregate investor behavior. B. No, it is too difficult to maintain because it requires so much trading. C. No, in aggregate investors must hold more of the larger market cap stocks, so the market portfolio cannot have an equal weight in every stock. D. Yes, it is easy to maintain because it requires very little trading
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