Price weighted index and self rebalancing

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CKBond

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Price weighted index and self rebalancing.
Anyone explain this concept ?
 
only volume weighted/float adjusted are self rebalancing types i think
 
self balancing means you dont need to rebalance which is the case with value weighted(except for dividend) wherein price adjust/equal weigted needs be periodically rebalanced to be in comformity.
 
Why do you need to rebalance price weighted index? B/c of dividends or stock splits?
 
tanyusha Wrote:
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> Why do you need to rebalance price weighted index?
> B/c of dividends or stock splits?
stock splits would for sure
 
tanyusha Wrote:
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> Ok, makes sense.
> comp_sci_kid, are you on this forum 24/7?
Tanyusha did you go to Pace unv?
 
tanyusha Wrote:
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> no, why? i went to high school in brooklyn though
nm, just knew a girl named Tanya from Pace who is also taking CFA ( i saw her at L1, dunno if she made it to 3 tho).
so ask any other questions while i am here. I am about jet soon.
 
where did you go to school?
i don’t have any questions yet, i am just going through all todays posts…
 
i have a question. Schweser PM 3 17.2. Answer is incorrect but their explanation is clearly states that the statement was actually correct. I am not getting it (probably late)
I went to private Yeshiva
 
Sorry, I have not done it yet and probably won’t for another week or so.
Private Yeshiva - hmm, not the one on ave J?
 
Nah, not that one, there are plenty in Brooklyn :). Doh :( Sometimes i just dont understand schweser. I read explanation and tha tis exactly what i thought but the choice they say is correct states the opposite. Sometimes i just dont get it :-/
 
tanyusha Wrote:
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> Go to sleep! :)
nah, going for a walk with my wife soon. I almost pay no attention to her recently cause of this exam :-/
 
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