A bond market index is easier to create than a stock market index because the universe of bonds is much broader than that of stocks.

Question

Quizplus · Accepted Answer

Creating a bond market index is more complex than creating a stock market index because bonds have a wider variety of issues, such as different maturities, issuers, and credit qualities, making the bond universe more fragmented and diverse than that of stocks.

A Bond Market Index Is Easier to Create Than a Stock