CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Which type of indices tend to have the momentum effect?
A. Price-weighted indices
B. Equally weighted indices
C. Market-capitalization-weighted indices
Explanation: The weighting method leads to overweighting stocks that have risen in price and underweighting stocks that have declined in price.

User Contributed Comments 3

User Comment
Shaan23 You guys are geniuses or I'm just stupid. I didnt get this...and dont understand at all
Shaan23 should've read the explanation -- but wasnt thinking that...good question
janmilly1 good question for those who had read official curriculum
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