Archive for November 25th, 2009

Market Cap Weighted Stock Indexes – Common, but Flawed

Wednesday, November 25th, 2009
Market Cap Weighted Stock Indexes – Common, but Flawed

Market capitalization is commonly used for weighting stocks in an index. In normal times, this is a sound practice when index companies vary widely in size. However, at times market cap weighting produces misleading information. Here’s what happens… »

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