Price-Weighted Index

B

The index that is price weighted among the options given is the Dow Jones Industrial Average (DJIA), so the correct answer is B.

A price-weighted index is a type of stock market index in which the component stocks are weighted according to their prices. In other words, stocks with higher prices have a greater impact on the index's performance compared to stocks with lower prices.

The Dow Jones Industrial Average is one of the most well-known and widely followed stock market indices in the world. It consists of 30 large, publicly traded companies in the United States. The index is calculated by adding up the stock prices of the 30 component companies and dividing the total by a divisor, which is adjusted periodically to account for changes such as stock splits and substitutions.

Unlike other indices that are weighted based on factors such as market capitalization (the total market value of a company's outstanding shares) or float-adjusted market capitalization, the DJIA simply takes the sum of the prices of its component stocks. This means that a higher-priced stock will have a larger impact on the index's value than a lower-priced stock, regardless of the market capitalization or other fundamental factors.

The other options mentioned in the question are not price-weighted indices. Here's a brief explanation of each:

A. New York Stock Exchange Composite: The NYSE Composite is a broad market index that includes all common stocks listed on the New York Stock Exchange (NYSE). It is a market-capitalization-weighted index, meaning that the weight of each stock is based on its market capitalization, not its price.

C. Standard & Poor's (S&P) Index: The Standard & Poor's index series includes various indices, such as the S&P 500, S&P 1000, and others. These indices are weighted based on market capitalization, not stock prices.

D. Russell 3000 Index: The Russell 3000 Index is a broad-market stock market index that includes 3,000 of the largest publicly traded U.S. stocks. Like the S&P indices, it is weighted by market capitalization, not stock prices.

To summarize, the Dow Jones Industrial Average (DJIA) is the price-weighted index among the options given.