CHAPTER 23Practical Issues with Building Indexes

In this chapter we investigate the intricacies associated with building an index by delving into the index construction methodology and rules used by the Index group at Russell Investments. The reason for taking this approach lies in the complexity of building indexes. At each step in the index construction process the builders must make a series of decisions about construction and handling of data. There is more than one “right way” to make these decisions, and different index providers make different decisions on some of these issues. As the old adage says, “There’s more than one way to skin a cat,” and our objective here is to show you one way to “skin the cat.” In Chapters 27 and 28 we will ...

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