Which of the following is an example of a value-weighted index?

The Russell 2000 is considered a value-weighted index because it is constructed based on the market capitalization of the companies included in the index. In a value-weighted index, also known as a market-capitalization-weighted index, larger companies have a greater impact on the index's overall value than smaller companies. This means that the index reflects changes in the value of the larger companies more than those of smaller ones.

The Russell 2000 specifically tracks the performance of the 2000 smallest stocks in the Russell 3000 Index, which represents a broad spectrum of the U.S. equity market. Its value-weighting approach means that changes in the stock prices of larger capitalization companies will have a more pronounced effect on the Russell 2000's movement compared to smaller companies.

In contrast, other indices mentioned utilize different weighting methodologies. For instance, the Dow Jones Industrial Average is price-weighted, where the index value is influenced by the stock prices of its components rather than their market capitalizations. The NYSE Composite consists of all common stocks listed on the NYSE and is also not strictly a value-weighted index, and the Wilshire 5000 is a broad index of U.S. stocks but encompasses multiple weighting schemes, primarily focusing