Historically there have been periods where a value-weighted index has a higher return than an equally weighted

Question:

Historically there have been periods where a value-weighted index has a higher return than an equally weighted index and other periods where the opposite has occurred. Why do you suppose this would happen?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

See More Books

Question Posted: Sep 19, 2012 04:35 AM

See More Questions

Why do you suppose that forensic DNA analysis relies principally on short tandem repeats (repeat polymorphisms), rather than single- nucleotide polymorphisms, such as that described on page 669 and...
Why do you suppose that business schools with weaker programs typically display their category ratings on billboards, whereas those with stronger programs usually do not place ads on billboards at...
Why do you suppose that large, well-known companies such as Apple, Starbucks, and Facebook prefer to have their shares traded on the NASDAQ rather than on one of the major listed exchanges, such as...
a. Given the following information, calculate the expected value for Firm Cs EPS. Data for Firms A and B are as follows: E(EPS A ) = $5.10, and A = $3.61; E(EPS B ) = $4.20, and B = $2.96. b. You...
The solid in three-space consisting of those points whose spherical coordinates satisfy ( ( 7.
As Figure P23.43 shows, the water molecule is bent, and the angle formed by the three atoms is $104.5^{\circ}$. Given that the permanent dipole moment of the molecule is \(6.186 \times 10^{-30}...
A off-axis tensile test (Figure 2.14) of a unidirectional AS/3501 carbon/epoxy specimen is conducted with $\theta=45^{\circ}$ and the applied stress is found to be \(\sigma_{x}=15.44...
Evergreen Fertilizer Company produces fertilizer. The companys fixed monthly cost is $25,000, and its variable cost per pound of fertilizer is $0.15. Evergreen sells the fertilizer for $0.40 per...
Vaughn Corporation has 73,000 shares of common stock outstanding. It declares a $2 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31....
Automatic control of helicopters is necessary because, unlike fixed-wing aircraft which possess a fair degree of inherent stability, the helicopter is quite unstable. A helicopter control system that...
In addition to price-weighted and value-weighted indexes, an equally weighted index is one in which the index value is computed from the average rate of return of the stocks comprising the index....
Another type of index is the geometric index. The calculation of a geometric index is similar to the calculation of a geometric return: 1 + RG = [(1 + R1) (1 + R2) . . . (1 + RN)]1/N The difference...
Below is a simplified circular-flow diagram for the economy of Micronia. 1. What is the value of GDP in Micronia? 2. What is the value of net exports? 3. What is the value of disposable income? 4....
1. Explain the difference between the human capital and signaling theories of education. 2. Briefly describe each of the 4 main pieces of labor legislation.
Starbucks is confronting a help issue and opportunity because the organization is encountering a decrease in consumer loyalty. According to a new report, consumer loyalty to Starbucks has declined...
Paraphrase Cost-based methods are useful in evaluating a potential information systems project in several ways such as determining the financial feasibility of a project. By estimating the costs...
A generator coil is rotated through one-fourth of a revolution (from 0-0 to 0 -90") in 20 ms. The 239-turn circular coil has a 4.3 cm radius and is in a uniform 1.56 T magnetic field which initially...
Question 4 A 1.5-inch diameter shaft yields is applied with a torsional load T shown in Figure Q4. The shaft is made of a material with a yield strength of 180 MPa, an ultimate tensile strength of...
Which of the following statements about the entity concept is not correct? a. The entity concept requires the preparers of accounts to treat the organisation as a separate entity from that of the...
Vectors are drawn from the center of a regular n-sided polygon in the plane to the vertices of the polygon. Show that the sum of the vectors is zero.
Trace the Customer Decision Journey for a customer buying a new mobile phone.
Suppose Intel is currently trading at $50. You want to sell it if it reaches $55. What type of order should you submit?
The divisor for the Dow Jones Industrial Average (DJIA) is most likely to decrease when a stock in the DJIA: a. Has a stock split. b. Has a reverse split. c. Pays a cash dividend. d. Is removed and...
Find the current divisor used to calculate the Dow Jones Industrials Average Index (INDU) value.
What is the worst case running time of the following sudo codes, in 0- notation? Suppose that all arithmetic operations (including simple multiplication) take a constant amount of time. Justify your...
4. Let G be a pseudorandom generator with expansion factor (n) > 2n. In each of the following cases, say whether G' is necessarily a pseudorandom generator and explain why or why not. Here, "||...
Write the code for the del () method in the following doubly linked list class public class ObjDList { private Obj Node list; private Obj Node tail; public ObjDList() { list = null; tail = null; }...

Historically there have been periods where a value-weighted index has a higher return than an equally weighted

Question:

Step by Step Answer:

Looking back at Chapter 1 you can see that there are years in which small cap stocks outperfor...View the full answer

Fundamentals of Investments Valuation and Management

Students also viewed these Corporate Finance questions