Institutional investors employ index-related strategies in order to:
A) Control market risk exposure.
B) Construct an index fund.
C) Enhance returns through index arbitrage.
D) Implement an asset allocation decision.
E) All of the above.

Question

Quizplus · Accepted Answer

Institutional investors use index-related strategies for various reasons, including controlling market risk exposure (A), constructing index funds (B), enhancing returns through index arbitrage (C), and implementing asset allocation decisions (D). Each of these strategies is related to the use of indexes in managing investments.

Institutional Investors Employ Index-Related Strategies in Order To