- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 2. Security Market Indexes
- Subject 4. Different Types of Security Market Indices
CFA Practice Question
A common problem faced when comparing various national stock indices across different countries is ______.
B. that the reported returns differ based on the currency used in the calculations
C. selecting the sample of stocks for inclusion in the index
A. restrictions on capital flows in many countries
B. that the reported returns differ based on the currency used in the calculations
C. selecting the sample of stocks for inclusion in the index
Correct Answer: C
The problems faced when creating an international stock index are those of sample selection, weighting, and computational procedure.
User Contributed Comments 7
| User | Comment |
|---|---|
| DariSH | how should I understand this comparison of indexes is for making an international one? where is it in the question?? |
| DonAnd | "across differnt countries..." |
| johntan1979 | Great question, DariSH! Try pressing Alt+F4 twice. Works for me. |
| ldfrench | ^This guy is right. |
| maryprz14 | lol |
| khalifa92 | the questions asks for the problem when comparing and answers with the problem faced when creating |
| khalifa92 | be cool boys |