Description

What an equity index is and how it is used to assess price or total return appreciation, as well as the advantages and disadvantages of market value-weighted equity indices, price-weighted equity indices, equally-weighted equity indices, and fundamentally weighted equity indices.

Learning Objectives

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1. Determine what an equity index is and how it is used to assess price or total return appreciation.
2. Identify the different types of equity indices and their uses, including market value-weighted, price-weighted, equally-weighted, and fundamentally weighted equity indices.
3. Recall the advantages and disadvantages of equity indices.