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When comparing Price-, Market Capitalization- and Equal-weighted indexes, which one of the following statements is incorrect? When a stock in the Dow Jones has
When comparing Price-, Market Capitalization- and Equal-weighted indexes, which one of the following statements is incorrect? When a stock in the Dow Jones has a 2-for-1 share split, going forward that stock is now having a lower weight in the index compared to prior to the split.. none of the above, all statements are correct When a stock in the Dow Jones has a 2-for-1 share split the divisor (d) will go down. When the small cap stocks in the S&P500 index are having a great year and are outperforming (higher rates of return) the large cap stocks then the market cap- weighted index (the one most commonly followed) will underperform the equal- weighted S&P500 index over the same time period. When a stock in the Dow Jones has a 2-for-1 share split, the published index is unchanged if all else the same.
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