"Sampling: Only a representative sample of the stocks that make up the index are purchased. • Advantages: Buys a representative sample of stocks in the benchmark index according to their weights in the index, Lower commission, Reinvestment of dividends is less difficult • Disadvantages: More tracking error. Source: http://in.docsity.com/en-docs/Equity_Portfolio_Management_Strategies_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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