Which Index Is Created by First Deriving the Initial Total

question 43

Multiple Choice

Which index is created by first deriving the initial total market value of all stocks used in the index?

• A) equally-weighted index.
• B) price-weighted index.
• C) unweighted index.
• D) value-weighted index.
• E) over-weighted index.

---

Definitions:

Frustrated Contracts Act

Legislation that deals with contracts that, through no fault of either party, cannot be fulfilled due to unforeseen events.

Termination Clause

A provision in a contract that outlines the conditions under which the agreement can be ended prior to the completion of its term.

Deposit

A sum of money placed in an account or given as security for the performance of an obligation, which may be refundable.

Tender

An offer to perform work, supply services, or sell goods at a specified price.