security market

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security market

Postby chandniwadhwani92 » Sat Nov 01, 2014 6:01 pm

Price weighted index
In schswer it is given A portfolio that has an equal number of share in each of constituent stocks will have price return same that will match the returns of price weighted index...

Here equal number of share means??????????

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security market

Postby edupristine » Sun Nov 02, 2014 3:40 am

It means that if a portfolio has 5 stocks, then the weight of each stock in the portfolio is 100/5 = 20%. or the percentage allocation is same for each stock in the portfolio.

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