CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

If you believe that one should buy and sell companies in line with their accounting figures, you should use ______ to measure the value of markets.
A. price-weighted indices
B. fundamentally weighted indices
C. float-adjusted market-capitalization-weighted indices
Explanation: A key belief behind the fundamental index methodology is that underlying corporate accounting/valuation figures are more accurate estimators of a company's intrinsic value than the listed market value of the company.

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