Question
1. In creating a market series index, the effect of low-priced stocks will have the highest relative impact in which of the following weighting schemes?
1. In creating a market series index, the effect of low-priced stocks will have the highest relative impact in which of the following weighting schemes?
A. Price-weighted series.
B. Equal-weighted price series
C. Market capitalisation-weighted series.
2. Which of the following is mot likely to be an example of style indices?
A. An index which consists of cyclical stocks.
B. An index which consists of emerging market stocks.
C. An index which consists of large market capitalisation stocks with high dividend yields.
3. Market value of a security is:
A. The current price of that security.
B. The intrinsic value of that security.
C. The fundamental value of that security.
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