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Basic Question 5 of 14
Which stock market index is computed using a price-weighted average?
II. Value Line Average
III. NYSE Index
IV. Wilshire Equity Index
V. Dow Jones Industrial Average
I. S&P 500 Index
II. Value Line Average
III. NYSE Index
IV. Wilshire Equity Index
V. Dow Jones Industrial Average
User Contributed Comments 4
| User | Comment |
|---|---|
| aniketcpp | S&P- Market Capitalization Value Line: Equal Weight NYSE: Market Capitalization Wilshire: Market Capitalization DJIA:Price weight |
| abs013 | Thanks aniketcpp |
| maryprz14 | "Wilshire; by measuring total dollar value, it is, in effect a value-weighted measure." Analystnotes, Reading 46, Subject4, Question 5 |
| khalifa92 | do we have to know these? seems unnecessary to me. |
I used your notes and passed ... highly recommended!
Lauren
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® 2024 Level I Curriculum, Volume 3, Module 2.