In a ________ index changes in the value of the share with the greatest market value will move the index value the most everything else equal.
A)value weighted index
B)equal weighted index
C)price weighted index
D)bond price index

Question

Quizplus · Accepted Answer

In a value-weighted index, the index is influenced more by companies with larger market values, so changes in the value of shares with the greatest market value will have the most significant impact on the index.

In a ________ Index Changes in the Value of the Share