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Basic Question 1 of 14

An equal-weight index assumes that ______

A. each company in the index has an equal number of shares.
B. each company in the index has one share outstanding.
C. there is an equal dollar amount invested in each company.

User Contributed Comments 1

User Comment
kalps Equal weighted index - there is an equal amount invested in each company - ex Value line index
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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.