- CFA Exams
- CFA Level I Exam
- Study Session 12. Equity Investments (1)
- Reading 37. Security Market Indices
- Subject 2. Index Construction and Management

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**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

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**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. |