Which One of the Following Is the Primary Flaw of a Price-Weighted

Multiple Choice

Which one of the following is the primary flaw of a price-weighted index?

A) Price-weighted indexes ignore stock splits which affect stock prices.
B) The effect a company has on the index is dependent solely on the price per share.
C) Only a small number of stocks can be included in a price-weighted index.
D) If the number of shares outstanding of an index stock changes, the index divisor must be recomputed.
E) The index can only be computed once the trading day is over.