CFA Practice Question

CFA Practice Question

Which one of the following is false?
A. A price-weighted series (index) is the arithmetic average of the current prices of the component securities.
B. All stocks have the same weight an un-weighted index irrespective of their price or market value.
C. A value-weighted series (index) is the arithmetic average of the current market values of the component firms.
Explanation: A value-weighted series (index) is the arithmetic average of the current market values of the component firms divided by the initial average market value.

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