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QUESTION TWO (12 MARKS) Explain THREE (3) criticisms of price-weighted index (6 marks) 2. You learn that S&P 500 market-value weighted index increased by 15%

QUESTION TWO (12 MARKS)

Explain THREE (3) criticisms of price-weighted index

(6 marks)

2. You learn that S&P 500 market-value weighted index increased by 15% during a specific period, whereas S&P 500 equal weighted index increased by 24% during the same period. Discuss what this difference in results implies.

(6 marks)

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