Explain what is meant by an index being price weighted in a, Financial Management

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Explain what is meant by an index being price weighted in a

1. Explain what is meant by an index being price weighted. In a price-weighted average, would you expect a $10 stock or a $50 stock to be more important? Why?

2. Explain how to compute a market-weighted average.

3. Explain how to calculate an unweighted average index.

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