Security Market Indices

CFA level I / Equity Investments: Market Organization, Market Indices, and Market Efficiency / Security Market Indices

Learning Outcome Statements
1. Description of a security market index
a. describe a security market index;

2. Calculation of price return and total return of an index
b. calculate and interpret the value, price return, and total return of an index;

3. Index Construction
c. describe the choices and issues in index construction and management;

4. Weighing methods in index construction
d. compare the different weighting methods used in index construction;
e. calculate and analyze the value and return of an index given its weighting method;

5. Rebalancing and reconstitution of an index
f. describe rebalancing and reconstitution of an index;


6. Uses of security market indices
g. describe uses of security market indices;


7. Types of equity indices
h. describe types of equity indices;


8. Types of fixed-income indices
i. describe types of fixed-income indices;


9. Alternative Investments Indices
j. describe indices representing alternative investments;


10. Comparison of types of security market indices
k. compare types of security market indices;


Security Market Indices: Chapter Test
10 Questions, 15 Minutes


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