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What is value weighted index and how is it computed in practice?

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What is value weighted index and how is it computed in practice?
posted Jul 6, 2017 by Deepak Jangid

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1 Answer

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A capitalization-weighted index is a type of market index with individual components that are weighted according to their total market capitalization. The larger components carry higher percentage weightings, while the smaller components in the index have lower weights. This type of index is also known as a market value-weighted index.

answer Jul 6, 2017 by Amrita
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