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(7 pts) 1. It is NOT affected by stock splits, and adjusts automatically when there is a stock split. 2. Stocks with higher prices have

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(7 pts) 1. It is NOT affected by stock splits, and adjusts automatically when there is a stock split. 2. Stocks with higher prices have a greater impact 3. The assumption is that investors randomly select stocks and invest the same dollar amount in each stock. 4. Stocks with higher returns have a greater impact. 5. The assumption is that investors purchase the same number of stocks in the market 6. Stocks with higher market size have a greater impact. 7. The assumption is that investors invest in each stock in proportion to its market size. price-weighted index value-weighted index equal-weighted index

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