Type of index in which current values of stock are added together and divided by value of stock on base date is classified as
A
value weighted index
B
herring weighted index
C
primary market index
D
stock market index
Correct Answer: value weighted index
Type of index in which current values of stock are added together and divided by value of stock on base date is classified as value weighted index. A value-weighted index assigns a weight to each company in the index based on its value or market capitalization.