An index computed from a simple average of returns is a/an Multiple Choice Ο equal weighted...

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Answer 1

Answer #1

In case of price weighted returns, the stock with higher price gets higher weight.
In case of value weighted returns, the stock with higher price x quantity = value gets higher weight
In case of equal weighted returns, all stocks get equal weight, and so it is simply the average of all returns

So option 1 Equal weighted returns is correct

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Answer 2

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