- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 37. Security Market Indexes
- Subject 1. Index Definition and Calculations of Value and Returns
CFA Practice Question
The S&P 500 is an example of a ______.
B. total return index
C. value return index
A. price return index
B. total return index
C. value return index
Correct Answer: A
User Contributed Comments 3
| User | Comment |
|---|---|
| linzlinked | This is clearly wrong. S&P 500 is free float market capitalisation weighted index. Should be C. |
| linzlinked | Second thought. The return is calculated based on price appreciation rather than income like dividends, so in terms of return, S&P 500 is price return index, and in terms of weighting, its value weighted. A is right then. |
| NBlanco | nice distinction linzlinked, that was a tricky question |