Question

The EAFE is:_____A) the East Asia Foreign Equity index.B) the Economic Advisor's Foreign Estimator index.C) the European and Asian Foreign Equity index.D) The Eastern Asian and French Equity index.E) the European,Australian,Far East index.

Answer 1

Answer:

E) The European,Australian,Far East index.

Explanation:

This acronym EAFE is seen to be used in conjunction of certain nations index in its financial dealings which stands for European,Australian,Far East. It is generally explained to be a market capitalization weighted index. Here, it explains that its individual components are been valued according to their market capitalization. It also explains that countries which tend to posses the largest stock markets, many cases have been linked to Japan and also the United Kingdom, will have the largest relative weighting in the index. Other cases made it arguable noted that certain changes in the market value of larger securities will result in a bigger move in the index than changes in the market value of smaller stocks.