An index is valued on a daily basis. However, some stocks in this particular index have not traded recently. As a result, this index suffers from index:
A)fatigue.
B)devaluation.
C)flatness.
D)staleness.
E)weighting.

Question

Quizplus · Accepted Answer

The correct term is "index staleness," which refers to the situation where an index does not accurately reflect current market values because some of its components have not traded recently and their prices are outdated.

An Index Is Valued on a Daily Basis