With value weighting, large company performance dominates changes in the S&P 500 Composite index.

Name: With value weighting, large company performance dominates changes in the S&P 500 Composite index.
Brand: Quizplus
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Question

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In a value-weighted index like the S&P 500, companies with higher market capitalizations have a larger impact on the index's performance, leading to large company performance dominating changes in the index.

With Value Weighting, Large Company Performance Dominates Changes in the S&P