n NISM Certifications
XXI NISM Series XXI-A
Medium

How do GDP-driven indices address some issues faced by traditional indices?

Practice question from NISM XXI A for PMS - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Include unlisted stocks from various countries

  2. B

    Weight each stock by its contribution to GDP

  3. Both A and B

    Correct answer

  4. D

    Neither A nor B

Why this is the answer

Such indices incorporate broader economic contributions, including unlisted entities, by weighting stocks based on GDP contribution.

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