A market index only contains the following three securities:
| Security | Beginning of period price per share($) | Market cap($ in millions) |
| X | 100 | 100 |
| Y | 200 | 150 |
| Z | 110 | 300 |
Which approach to indexing will most likely give Security X a weight of 18%?
C is correct. Per computations shown below, the market-capitalization index will give Security X the lowest weight in the index.
