Reading 56: Security Market Indices-LOS h 习题精选 2011, identified, stocks, border, center

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Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 56: Security Market Indices

LOS h: Discuss types of equity indices.

 

 

An equity index comprised of value stocks, identified by their price-to-earnings ratios, is best described as a:

A) sector index.

B) style index.

C) fundamental weighted index.

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An index of value stocks is an example of a style index. Sector indexes measure the performance of securities in specific industries or industry sectors. Fundamental weighting is used to weight indexes by a factor such as the size of the firms or economies represented in the index.