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e. A price weighted index places more weight on stocks with a higher price, whilst a value weighted index places more weight on stocks with

e. A price weighted index places more weight on stocks with a higher price, whilst a value weighted index places more weight on stocks with a higher market capitalization. Discuss. (3 marks) f. Price weighted indices have been criticized because they introduce a downward bias by reducing the weight of growing companies whose stock split. What does this mean and why does the underweighting occur

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