TY - JOUR T1 - Equity Index Construction JF - The Journal of Index Investing SP - 36 LP - 39 DO - 10.3905/jii.2011.2.2.036 VL - 2 IS - 2 AU - Daniel Broby Y1 - 2011/08/31 UR - https://pm-research.com/content/2/2/36.abstract N2 - In this article, the author detail the historic background behind the science of constructing a country or global index. He argues that the industry has largely developed from practitioners rather than academia. He shows how a country index is related to the market portfolio of the capital market pricing model and details the trade-offs that modern index constructors have to make.TOPICS: Passive strategies, equity portfolio management, VAR and use of alternative risk measures of trading risk ER -