Q762
A price weighted index is an arithmetic mean of
A.
future prices
B.
current prices
AnswerC.
quarter prices
D.
none of these
Answer: Option B
Solution
Answer: Option B
Solution:
A price weighted index is an arithmetic mean of current prices. A price-weighted index is a stock index in which each stock influences the index in proportion to its price per share. Adding the price of each stock in the index and dividing by the total number of stocks determines the index's value.