69. You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wanted to construct an index to track your portfolio performance, your best match for your portfolio would be to construct .

The correct answer is a price-weighted index.

Explanation:

A weighted price index is a type of stock index that is simply calculated as the arithmetic average of the price of the securities that make up the index, that is, it adds up the price of all the shares that make up the index and divides it by the number of actions that make up the index:

Weighted price index = Sum of the price of all shares / Number of shares

It reflects the variation in performance if we had an action of each index value. So the performance of these types of indices is greatly influenced by the values that have a very high price of their shares.

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