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Basic Question 2 of 7
The S&P 500 is an example of a ______.
B. total return index
C. value return index
A. price return index
B. total return index
C. value return index
User Contributed Comments 3
| User | Comment |
|---|---|
| linzlinked | This is clearly wrong. S&P 500 is free float market capitalisation weighted index. Should be C. |
| linzlinked | Second thought. The return is calculated based on price appreciation rather than income like dividends, so in terms of return, S&P 500 is price return index, and in terms of weighting, its value weighted. A is right then. |
| NBlanco | nice distinction linzlinked, that was a tricky question |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
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Learning Outcome Statements
describe a security market index
calculate and interpret the value, price return, and total return of an index
CFA® 2024 Level I Curriculum, Volume 3, Module 2.