CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

A GDP-weighted multi-market index is essentially a ______ index.
A. price-weighted
B. market-capitalization-weighted
C. fundamentally weighted
Explanation: Such an index weights each country in the overall index in proportion to its relative GDP.

User Contributed Comments 2

User Comment
tomalot GDP is the size of the economy i.e. the market cap?
CJPerugini @tomalot - I was under the same impression at first. The main difference is GDP is a periodic measure, meaning it is more like the value added to its existing market cap.
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