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.

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Definitions:

Financing Activities

Transactions related to raising funds or repaying borrowed funds, as reported in the statement of cash flows.

Financing Activities

Transactions a company undertakes to fund its operations and expansions, such as issuing equity or taking on loans.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.