Asked by Teresa Salina on Jun 03, 2024
Verified
Which of the following indices is (are) market-value weighted?I) The New York Stock Exchange Composite IndexII) The Standard and Poor's 500 Stock IndexIII) The Dow Jones Industrial Average
A) I only
B) I and II only
C) I and III only
D) I, II, and III
E) II and III only
Market-Value Weighted
An indexing method where the weight of each constituent security in an index or portfolio is based on its total market capitalization, favoring larger companies.
Dow Jones Industrial Average
A stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.
- Comprehend the calculation and adjustments of major stock indices.
Verified Answer
AT
Arthur TompkinsJun 06, 2024
Final Answer :
B
Explanation :
I and II, the New York Stock Exchange Composite Index and the Standard and Poor's 500 Stock Index, are market-value weighted. The Dow Jones Industrial Average is price-weighted.
Learning Objectives
- Comprehend the calculation and adjustments of major stock indices.