- A security market index represents a given security market, market segment, or asset class.
- Most indices are constructed as portfolios of marketable securities.
- The value of an index is calculated on a regular basis using either the actual or estimated market prices of the individual securities, known as constituent securities,within the index.
- For each security market index, investors may encounter two versions of the same index (i.e., an index with identical constituent securities and weights):one version based on price return and one version based on total return.
- As the name suggests, a price return index, also known as a price index, reflects only the prices
Sunday, 9 June 2019
INDEX DEFINITION AND CALCULATIONS OF VALUE AND RETURNS
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