单选题 Which of the following weighting schemes will produce a downward bias on the index due to the occurrence of stock splits by firms in the index?

A、

A. Market value-weighted series.
B、

B. Price-weighted series.
C、

C. Unweighted price indicator series.

【正确答案】 B

【答案解析】The price-weighting scheme sums the market price of each of the stocks contained in the index and then divides this sum by the number of stocks in the index. Thus if a firm executes a stock split thereby reducing its share price, this will cause a downward bias in the index.