NO.PZ202207040100000604
问题如下：
As an indexing technique, the number of holdings in Manager B’s index most likely illustrates:选项：
A.reconstituting. B.packeting. C.buffering.解释：
SolutionC is correct. Buffering involves establishing ranges around breakpoints that define whether a stock belongs in one index or another. Some index providers have adopted policies intended to limit stock migration problems and keep trading costs low for investors who replicate indexes. Size rankings may change daily with market price movements, so buffering makes index transitions a more gradual and orderly process. As long as stocks remain within the buffer zone, they stay in the current index, and as a result, the holdings of the fund may exceed the holdings of the index.
A is incorrect. Reconstitution involves deleting names that are no longer in the index and adding names that have been approved as new index members.
B is incorrect. Packeting involves splitting stock positions into multiple parts. For example, if a mid-cap stock’s capitalization increases and breaches the breakpoint between the mid-cap and large-cap indexes, a portion of the total holding is transferred to the large-cap index but the rest stays in the mid-cap index. On the next reconstitution date if the stock value remains large cap and all other qualifications are met, the remainder of the shares are moved out of the mid-cap index into the large-cap index.
buffering 可多可少，packing 只能多，所以选packing？
