Problem 21

Introduction

Indexing:

Indexing is a term used in economics to describe a measure or estimate of something. It can be used as a statistics optimization technique to monitor financial data by combining a specific group of consumers or as part of a passive corporate finance strategy. Instead of carefully selecting stocks, indexing is frequently employed to simulate huge market returns by passively trading in stock indexes. More complex indexing methods can duplicate the investments and rewards of a tailored index.