Vidyalelo
Management · Q634

International Finance and Treasury

Graduate and Post Graduate · Management · question 634

Q634

Type of index in which current values of stock are added together and divided by value of stock on base date is classified as

A.
value weighted index
Answer
B.
herring weighted index
C.
primary market index
D.
stock market index

Answer: Option A

Solution

Answer: Option A
Solution:
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as value weighted index. A value-weighted index assigns a weight to each company in the index based on its value or market capitalization.