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Select all true statements A. The value of a price weighted index depends heavily on the market capitalization
of the firms included in it C. If you want to create an index that reflects the behavior of 10 firms with similar market values but considerably different share prices, you should use the price
weighted approach B. A value weighted index is computed by considering both the price of shares and
the number of shares outstanding of each firm included in the sample
D. If you want to construct an index with 10 firms with different prices and market values, the methodology used (price or value weighting) would heavily affect the
behavior of the index

Q&A Education