Which of the following types of indexes is a stock market index in which stocks are held in proportion to their share price?
A)balanced
B)market-weighted
C)dollar-weighted
D)price-weighted
E)value-weighted

Question

Quizplus · Accepted Answer

A price-weighted index is a stock market index in which stocks are held in proportion to their share price. In a price-weighted index, stocks with higher prices have a greater influence on the index's performance than stocks with lower prices. Examples of price-weighted indexes include the Dow Jones Industrial Average and the Nikkei 225.

Which of the Following Types of Indexes Is a Stock