Scan QR code or get instant email to install app
Question:
To ensure the continuity of a value-weighted index when one of the stocks in the index is split:
A
no adjustment is necessary.
explanation
Value-weighted indexes do not need to be adjusted for stock splits because the market capitalization of the company remains the same.
Take more free practice tests for other PASSEMALL topics with our cfa level 1 sample questions now!
Related Information
Comments