Section outline

  • Chapter Outcomes:

    The students should be able to:
    • Describe a security market index;
    • Calculate and interpret the value, price return, and total return of an index;
    • Describe the choices and issues in index construction and management;
    • Compare the different weighting methods used in index construction;
    • Calculate and analyze the value and return of an index given its weighting method;
    Chapter Content:

    • Index definition and calculation, 
    • index construction and management,
    •  Uses of market indices, 
    • Equity indices, 
    • Fixed-income indices, 
    • Indices for alternative Indices.