- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 2. Security Market Indexes
- Subject 2. Index Construction and Management
CFA Practice Question
The Standard & Poor's 500 Composite Index is ______
B. a geometric average of the market values of 500 stocks.
C. expressed as an arithmetic average of the prices of 500 stocks.
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.
Correct Answer: A
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. |