Capitalization weighting or value weighting weights components by _____ rather than by the value of a share.
A) net income
B) dividend yield
C) capital expenditure
D) value of shares outstanding

Question

Quizplus · Accepted Answer

Capitalization weighting or value weighting weights components by the value of shares outstanding rather than by the value of a single share. This method considers the total market value of a company's outstanding shares to determine its weight in the index or portfolio.

Capitalization Weighting or Value Weighting Weights Components by _____ Rather