标题: Reading 31: Equity Portfolio Management－LOS d [打印本页]
作者: tycoon 时间: 2008-9-16 10:04 标题: [2008] Session 10－Reading 31: Equity Portfolio Management－LOS d
CFA Institute Area 8-11, 13: Asset Valuation
Session 10: Equity Portfolio Management
Reading 31: Equity Portfolio Management
LOS d, (Part 1): Distinguish among the predominant weighting schemes used in the construction of major equity share indices.
作者: tycoon 时间: 2008-9-16 10:05
Which of the following statements regarding a free float-adjusted market capitalization index is least accurate?
| A) | The float adjusted index is considered the best index type by many investors, because it is representative and can be mimicked with minimal tracking risk. |
|
B) | The major value-weighted indices in the world have not been adjusted for free float. |
|
| C) | A free float-adjusted market capitalization index assumes the investor has bought all the publicly available shares of each company in the index. |
|
| D) | A free float-adjusted market capitalization index is adjusted for the amount of stock that is actually available to the public. |
|
Answer and Explanation
The major value-weighted indices in the world have been adjusted for free float.
作者: tycoon 时间: 2008-9-16 10:05
Which of the following indices would be biased towards small cap stocks?
| A) | A value-weighted index. |
|
| B) | A free float-adjusted market capitalization index. |
|
C) | An equal-weighted index. |
|
| D) | A price-weighted index. |
|
Answer and Explanation
The equal-weighted index is biased towards small-cap companies because they will have the same weight as large-cap firms even though they have less liquidity. Many equal-weighted indices also have more small companies in them than large firms, creating a further bias towards small companies. Value-weighted indices are biased towards large cap stocks and price-weighted indices are biased towards high priced stocks.
[此贴子已经被作者于2008-9-18 17:52:24编辑过]
| 欢迎光临 CFA论坛 (http://forum.theanalystspace.com/) |
Powered by Discuz! 7.2 |