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Basic Question 5 of 14

Which stock market index is computed using a price-weighted 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.
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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

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.