3- Information and Indices

Question 1

What is a price/unweighted weighted index?

Answer 1

Weights the index by the price of each stock, and does not consider market cap

Question 2

What is a market value-weighted index?

Answer 2

Weights the index by market cap of each stock

Question 3

What is an equally weighted index?

Answer 3

Gives an equal weighting to each stock

Question 4

What is an unweighted geometric index?

Answer 4

Index based on the geometric mean of returns on the stock prices