CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Bond market indices are typically computed ______.

I. using value-weighting based on the outstanding amount of par value of the underlying issues
II. based on total return as opposed to capital gain
III. using prices quoted by traders
Correct Answer: I, II and III

This is different than with typical stock indices, which use a variety of weighting methods, usually measure only price change, and use actual trade prices.

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