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What does weighted mean? You refer to it a lot, but it's not in the golossary?Thanks
Weighted is usually how significant something is like for your grade in a class each test has a certain weight, eg if there are 5 assignments, a midterm and final the final may have a weight of 50%, midterm 25% and each assignment 5% in making up the grade.Similarly, each stock in a index has a % allocated aka weight assigned to it. For example each stock of the S & P 500 is its market cap divided by the total market cap of the index for its weight while for the Dow it is the price of the stock divided by the sum of all stock prices.Does this clarify it?JB
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