Indices · Index specialist topics · lesson 9 of 9 · 8 min read · David Alexander
What an index does not measure
measurement limits
The things an index is silent about by construction: companies that failed out of it, businesses too small or private to qualify, the economy behind the market, and the median company's experience. None of these are flaws - an index measures what its methodology says it measures - but each is routinely read into the number anyway.
This lesson is part of the advanced modules.
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