@ravivooda @vincentt Statement (Schweser Mock Exam 2 PM - Q58): International equity indexes are generally weighted using the market cap of the countries in the index, although the relative GDP/GNP of the countries in the index can also be used. According to Schweser, this statement is correct. I can't find in my notes where GDP/GNP of countries can be used. Any idea?

@alta12 schweser practices exam are pretty similar to the previous years, they made minor changes here and there, just briefly compared it to my friend's practice mocks so they might have left this out. Plus, schweser made their errata section private now.

@alta12, I too did not find this statement. However since using free float Market cap is correct procedure I have selected it as right. May be it was in old syllabus and they missed to correct it.

A CFA Level 3 Discussion About Using GDP/GNP Of The Countries In The Index For Customised Benchmark

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This topic has 3 replies, 4 voices, and was last updated Oct-177:28 am by MM12.

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- Alta12
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  23 Oct 2017 at 12:24 am
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  @ravivooda @vincentt‌
  
  Statement (Schweser Mock Exam 2 PM – Q58): International equity indexes are generally weighted using the market cap of the countries in the index, although the relative GDP/GNP of the countries in the index can also be used.
  
  According to Schweser, this statement is correct. I can’t find in my notes where GDP/GNP of countries can be used. Any idea?
- vincentt
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  - CFA Level 3
  23 Oct 2017 at 4:11 am
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  @alta12 schweser practices exam are pretty similar to the previous years, they made minor changes here and there, just briefly compared it to my friend’s practice mocks so they might have left this out. Plus, schweser made their errata section private now.
- RaviVooda
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  - CFA Level 3
  23 Oct 2017 at 12:54 am
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  @alta12, I too did not find this statement. However since using free float Market cap is correct procedure I have selected it as right. May be it was in old syllabus and they missed to correct it.
- MM12
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  - CFA Level 3
  23 Oct 2017 at 7:28 am
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  I have not seen this statement anywhere in the books (or maybe I don’t remember it). I can confirm from work experience though that there are GDP-weighted indices out there.
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