Indexing of Bond Portfolios Is Difficult Because

Indexing of bond portfolios is difficult because

A) the number of bonds included in the major indexes is so large that it would be difficult to purchase them in the proper proportions.
B) many bonds are thinly traded so it is difficult to purchase them at a fair market price.
C) the composition of bond indexes is constantly changing.
D) all of these are true.
E) both a and b are true.

Correct Answer:

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