Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. price weighted indices have been criticized becaus

Price weighted indices have been criticized because they introduce a downward bias by reducing the...

70.2K

Verified Solution

Question

Accounting

Price weighted indices have been criticized because they introduce a downward bias by reducing the weight of growing companies whose stock split. What does this mean and why does the underweighting occur?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Security devices Inc. needs additional office space to accommodate expansion. SDI wants to avoid income statement...

Statistics
1.2K views

dentify the appropriate statistical test for each research description: Single-sample z-test Single-samplet-test Independent samples t-test Related samples t-test (repeated measures...

Medical Sciences
1.2K views

Draw graphs showing the effects on action potentials in a postsynaptic cell of effective doses for...

Chemistry
1.2K views

A .435 g sample of a nonvolatile, nonionizable solute with a molar mass of 67.4 g/mol...

Psychology
1.2K views

Suppose you work in public relations for a company that is developing an attractive, affordable, low-emissions...

Advance Math
1.2K views

Euclidean metric) The metric d (( x 1 ,x 2 ) , ( y 1 ,y 2 )) = ? ( x 1 ? x 2 ) 2 + ( y 1 ? y 2 ) 2 on R 2 generates the standard (product) topology on R 2 .

Biology
1.2K views

Watch the following video Carbon Footprint of a Sandwich Answer the following questions based on...

Physics
1.2K views

20 In potentiometer wire of length L and resistance 10 2 is connected in series...

Basic Math
1.2K views

Find an equation for the ellipse whose vertices are at (2, -9) and (2,3), and...

Calculus
1.2K views

Let X and Y be two independent random variables with distribution functions Fx and Fy.(a)...

Calculus
1.2K views

Differentiate the following function 2x 5 x 4x y

Finance
1.2K views

phelps Labs has assets of $455,000, current liabilities of $66,000, and long-term liabilities of $99,000....