Security Market Indices II
About the Lecture
The lecture Security Market Indices II by Edu Pristine is from the course Archiv - Equity Investments. It contains the following chapters:
- Value and Return of an Index Based on Weighting Method
- Rebalancing and reconstitution
- Uses of security market indices
- Types of equity indices
- Types of fixed-income indices
- Types of Security Market Indices
Author of lecture Security Market Indices II
Edu Pristine
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Excerpts from the accompanying material
... return of an index given its weighting method Prerequisite...
... information Company Price No of Shares Outstanding A3501,000 B1403,000 C805,000" ...
... Index value = Sum of (weight * price) "Index return = (Index valueT+1 Index value T)/ index value T ...
... A1/3 = 33.3 % B1/3 = 33.3 % C1/3 = 33.3 % "Equal Weighting " Index value = Sum of (weight * price) ...
... value = Sum of (weight * price) " Index return = (Index valueT+1 Index value T)/ index value T Company (A) Price(B) No of Shares ...
... cap index Weight = market cap of stock/sum of all market cap ...
... is closestto A. 34.25; 4095 B. 35.45; 5025 C. 32.45; 4105 StockNo. of Free Floating Shares Market Price TT+1 A2Z ...
... Describe rebalancing ...
... What? Why? Price-weighted index, Market ...
... effect, Reconstitution, What? Relation ...
... the weights of each security in the index? ...
... and Reconstitution. The price of stock XYZ fell from $ 100 to $ 20. Stock XYZ was a constituent of an index but after the stock fall, its market cap reduced many folded and thus needed to be replaced in the index. ...
... Adjusting the weights of securities in a portfolio to ....
