Equally Weighted Index not Investable because it is not rebalanced often?

CFA Level III
#1

That’s what is says on Schweser’s answer key for Practice Exam 2. I always thought equally weighted indexes are investable.

#2

Maybe, but it would track like a drunk hooker in a DUI check

#3

you would have to rebalance daily not feasible to invest in that type of index

#4

for SAMURAI purposes its not investable, or better said not practical to be investable because of the excessive transaction costs as a result of the need for frequent rebalancing

#5

dont forget that it also has a small cap bias and is therefore fairly illiquid (this also impacts the investability)