Market indexes:
· to represent the behaviour of the market
· to track the market movements,
· to construct market-tracking (index) portfolios,
· to evaluate the performance of actively-managed funds
· to calculate market risk premium and betas
Factors to construct index:
· sample be representative of population
· weighting by price, total value or equal weight
· maths & computation method
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment