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Which of These Statements Is NOT a Limitation of a Composite

Question 4

Multiple Choice

Which of these statements is NOT a limitation of a composite index?


A) A composite index may help inform complex decision making, such as taxation policy
B) A composite index risks being misinterpreted by a layperson
C) A composite index is only really suitable for giving an overall impression of change
D) A composite index may become inaccurate if weightings change over time

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