Since hedge funds are not required to report their performance to any
party except for the investor, therefore constituents determine the hedge
fund index rather than the index providers determining the constituents.
Equity Investments MCQ - Equity Investments Section 1
There is no standardization with regards to commodity
indices. Different indices will probably use different weighting methods.
The other two statements are true.
Upward bias exists only in the case of hedge funds and not in the case of
commodities. The other two options are definitely issues pertaining to a
commodity index.
Style indices represent groups of securities classified according to market
capitalization, value, growth, or a combination of these characteristics
Style indices represent groups of securities classified according to market
capitalization, value, growth, or a combination of these characteristics.
