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Basic Question 9 of 14

The Standard & Poor's 500 Composite Index is ______

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.
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I used your notes and passed ... highly recommended!
Lauren

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.