Learning Outcome Statements

1. Index Definition and Calculations of Value and Returns

a. describe a security market index;

b. calculate and interpret the value, price return, and total return of an index;

2. Index Construction and Management

c. describe the choices and issues in index construction and management;

d. compare the different weighting methods used in index construction;

e. calculate and analyze the value and return of an index given its weighting method;

f. describe rebalancing and reconstitution of an index;

3. Uses of Market Indices

g. describe uses of security market indices;

4. Different Types of Security Market Indices

h. describe types of equity indices;

i. describe types of fixed-income indices;

j. describe indices representing alternative investments;

k. compare types of security market indices.