单选题

Which of the following statements is most accurate with respect to rebalancing and reconstitution of security market indices?

A、 Turnover within an index results from a reconstitution but not from rebalancing.
B、 A price-weighted index requires rebalancing more than a market-capitalization-weighted index.
C、 Equal-weighted indices require frequent rebalancing.

【正确答案】 C

【答案解析】

After an equal-weighted index is constructed and the prices of constituent securities change, the index is no longer equally weighted. Therefore, maintaining equal weights requires frequent adjustments (rebalancing) to the index.