_____ is the process of weighting large companies more heavily in a stock index.

Question

Quizplus · Accepted Answer

Market-cap weighting is the process where the companies with larger market capitalizations (total market value of a company's outstanding shares) have a greater impact on the index's performance. This means that changes in the stock prices of larger companies will have a more significant effect on the overall index value compared to changes in the stock prices of smaller companies.

_____ Is the Process of Weighting Large Companies More Heavily