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Basic Question 1 of 14

An equal-weight index assumes that ______

A. each company in the index has an equal number of shares.
B. each company in the index has one share outstanding.
C. there is an equal dollar amount invested in each company.

User Contributed Comments 1

User Comment
kalps Equal weighted index - there is an equal amount invested in each company - ex Value line index
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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

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.