why stratified sampling vs optimum and schweser Pratcice V1 error

why stratified sampling has low transaction cost compared with optimun?

in schweser practice exam V1 P99 Q9, why startup cost 200,000 is not deducted at total investable asset? the answer is not correct or not?

optimization requires frequent rebalance of portfolio to maintain same risk exposures to those of benchmark.

Although it offers lower tracking error than stratified sampling, higher cost is the trade off.

thanks, how about my second question in schweser ?

He wants to start law practice AFTER he graduates from school.

Question asks for FIRST YEAR IN LAW SCHOOL.

thank you very much

optimization = lots of math. Remember that in case trustees desire an easy way of calculation. Was on previous AM exam.

BTW, why I’m thinking of it, remember ASCORP when recalling analyst traps



Confirming Evidence




Random and OT - but maybe it’ll help somebody in a few weeks.