Equity Investments Q106

0. Tim is working on his assignment to compare equity indices with fixed income indices. From his class lecture, he recalls that
1) fixed income securities are harder to replicate
2) constituent securities of fixed-income indices are more liquid, and
3) constituent securities of fixed income indices are drawn from a larger pool as compared to securities of equity indices.
Out of the three facts he recalls, which of the following is least likely correct?

Answer
Comment
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Option : B
Explanation : Constituent securities of fixed-income indices are generally less liquid compared to equity securities.

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