Question: Two indices contain exactly the same stocks; one is a market-capitalization-weighted index that increased by 11%, whereas the other is an equal-weighted index that increased
Two indices contain exactly the same stocks; one is a market-capitalization-weighted index that increased by 11%, whereas the other is an equal-weighted index that increased by 12% over the same period. This is explained by which of the following?
There were a large number of stock splits over the period.
There were a small number of stock splits over the period.
The larger-capitalization stocks underperformed the smaller-capitalization stocks.
The larger and smaller capitalization stocks performed about the same over the period.
The larger-capitalization stocks outperformed the smaller-capitalization stocks
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