An index computed from a simple average of returns is a/an ________.
A) equal weighted index
B) value weighted index
C) price weighted index
D) share weighted index

Question

Quizplus · Accepted Answer

An index computed from a simple average of returns is known as an equal weighted index. This type of index gives equal importance to each component of the index, regardless of its market capitalization or size.

An Index Computed from a Simple Average of Returns Is