Equity Index Construction

Journal of Index Investing, Vol. 2, No. 2, pp. 36-39, 2011

Posted: 15 Sep 2011

See all articles by Daniel P. Broby

Daniel P. Broby

Durham Business School; University of Strathclyde - Strathclyde Business School

Date Written: September 14, 2011

Abstract

In this article, the author detail the historic background behind the science of constructing a country or global index. He argues that the industry has largely developed from practitioners rather than academia. He shows how a country index is related to the market portfolio of the capital market pricing model and details the trade-offs that modern index constructors have to make.

Keywords: equity, index, indexes, stock-market, index construction benchmark, S&P 500, FTSE

JEL Classification: G12, G11

Suggested Citation

Broby, Daniel P. and Broby, Daniel P., Equity Index Construction (September 14, 2011). Journal of Index Investing, Vol. 2, No. 2, pp. 36-39, 2011, Available at SSRN: https://ssrn.com/abstract=1927729

Daniel P. Broby (Contact Author)

University of Strathclyde - Strathclyde Business School ( email )

100 Cathedral Street
Glasgow G1 1XU
United Kingdom

Durham Business School ( email )

Old Elvet
Mill Hill Lane
Durham, Durham DH1 3HP
United Kingdom

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