- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 37. Security Market Indexes
- Subject 2. Index Construction and Management
CFA Practice Question
An index in which every company is assigned weight proportional to its market capitalization is called a(n) ______.
A. market-capitalization-weighted index
B. price-weighted index
C. equal-weighted index
Explanation: Firms with large market value have greater impact on the index than firms with small market value.
User Contributed Comments 1
| User | Comment |
|---|---|
| Riyadi | ex S&P500 |