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Basic Question 9 of 14
The Standard & Poor's 500 Composite Index is ______
B. a geometric average of the market values of 500 stocks.
C. expressed as an arithmetic average of the prices of 500 stocks.
A. a market-value-based indicator expressed in relative numbers with a base value of ten.
B. a geometric average of the market values of 500 stocks.
C. expressed as an arithmetic average of the prices of 500 stocks.
User Contributed Comments 3
| User | Comment |
|---|---|
| Mine | definition of how to calculate the value weighted series |
| Bududeen | mv/base value * value index |
| cong | the base value for S&P 500 is 10. |
Your review questions and global ranking system were so helpful.
Lina
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.