CFA Level I Security Market Indices Video Lecture by Mr. Arif Irfanullah
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- Опубліковано 11 вер 2024
- This CFA Level I video covers concepts related to:
• Overview
• Price Weighted Index
• Equal Weighted Index
• Market Capitalization Weighted Index
• Fundamental Weighting
• Rebalancing and Reconstitution
• Uses of Indices
• Equity Indices
• Fixed Income Indices
• Alternative Investment Indices
For more updated CFA videos, Please visit www.arifirfanullah.com.
thanks ur videos are really good help and they well complement the readings to bring out clarity and better understanding...
You didn't explain an example on market CAP. How do we calculate the market Cap weighting index? Is it just the Sum of (Price * Shares) or you divide it on the base period also?
First PWI is 66.67
Second PWI is 85
They haven't subtracted 85 from 66.67.
It is (85-66.67)/66.67*100
the calculation can also be done as [85/66.67] -1 = 27%
Damn this brother is smart!
the last part of market capitalisation weighting is known as free float market capitalisation which in turn has a different notation
There are some parts ambiguous in the video
Giving some idea about it might help.
In price weighted index the investment is proportional to price
Ex : It would be 50% A , 25% B, 25% C
In Equal weighted the investment is equally weighted for all three I.e, 33% for A,B and C
In Market Cap Weighted the investment is proportional to mkt cap
Say you have $100k so 200mil:800mil I.e, 1:4 In proportional which means 20% A and 80 %B out of total $100k
Also P/E is not same as Mkt value/ earnings ,still unclear about that
since the first PWI is 66.67, and the sec PWI is 85, from 66.67 to 85 is 27% increase...
yeah i didnt get why is that 27% either -_- then that theory doesnt hold if PWI gives less than EWI
I am facing problem in problem 14 of the practice exercise. Can you please explain me the solution of the problem.
on the Fundamental section
How did we get 10% and 20% for A and B...?
thanks
You are most welcome!
Thank you, much appreciated Mr Irfanullah
+BboyGraphicx You are most welcome! IFT's objective is to help CFA candidates around the world. There is more material on our website: ift.world/ Please like our FB page (facebook.com/CFA.Trainer) to support us. Thank you!
Good job....keep it up....Thanks
Great video!
Thank you so much.
IFT support team
Great that helped alot 👍🏻
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How was the PWI return 27% ? Did not get that part
the calculation can also be done as [85/66.67] -1 = 27%
ShouLdn't the PWI return 21 and not 27 ?
the calculation can also be done as [85/66.67] -1 = 27%
give some more examples