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Basic Question 0 of 6
A market-capitalization weighted index gives the ______.
B. stock with the highest market capitalization the most impact on the index
C. stock with the highest percentage price change the most influence on the index
A. highest-priced stock the most impact on the index
B. stock with the highest market capitalization the most impact on the index
C. stock with the highest percentage price change the most influence on the index
User Contributed Comments 1
| User | Comment |
|---|---|
| thekobe | remember, Dow Jones is a price weighted, Value Line an equally weighted |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe the choices and issues in index construction and management
compare the different weighting methods used in index construction
calculate and analyze the value and return of an index given its weighting method
describe rebalancing and reconstitution of an index
CFA® 2025 Level I Curriculum, Volume 3, Module 2.