lower cost: stratified sampling or optimization

CFA Level III
#1

which strategy has a lower cost stratified sampling or optimization?

#2

optimization require more rebalancing than stratified sampling. I would say that stratified sampling as lower cost.

#3

optimization require more rebalancing than stratified sampling. I would say that stratified sampling as lower cost.

#4

Stratified sampling = lower cost

Optimization = less tracking error

#5

They should b combined wiith replication for best results.

replicate the largest positions and then use either of these or both to get best results.

#6

+1