A price weighted index is an arithmetic mean of

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A price weighted index is an arithmetic mean of

A. future prices

B. current prices

C. quarter prices

D. none of these

Answer: Option B

Solution (By Examveda Team)

A price weighted index is an arithmetic mean of current prices. A price-weighted index is a stock index in which each stock influences the index in proportion to its price per share. Adding the price of each stock in the index and dividing by the total number of stocks determines the index's value.

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