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Basic Question 8 of 14

A(n) ______ index assumes that the same dollar amounts are invested in each stock in the index at the beginning of the period.

A. price-weighted
B. equally weighted
C. market-capitalization-weighted

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

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.