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Salomon Brothers World Equity Index (SBWEI)

What is 'Salomon Brothers World Equity Index - SBWEI'

An index that measures the performance of fixed-income and equity securities from domestic and international markets that consist of companies with a float of at least $100 million.

Explaining 'Salomon Brothers World Equity Index - SBWEI'

The Salomon Brothers World Equity Index uses a top-down approach to evaluating companies. Each security within the SBWEI index is weighted according to its float. The SBWEI index includes securities from over 6000 companies located in 22 different countries.


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Q&A About Salomon Brothers World Equity Index (SBWEI)


What are the countries represented in this index?

There are 22 different countries represented in this index.

What is the Salomon Brothers World Equity Index?

The Salomon Brothers World Equity Index measures the performance of fixed-income and equity securities from domestic and international markets that consist of companies with a float of at least 1 million.

How many companies does this index include?

This index includes 6 companies located in 22 different countries.

Does this index use a bottom up or top down approach to evaluating securities?

This index uses a top down approach to evaluate securities.

What is a top down approach to evaluating companies?

A top down approach evaluates each security within an index based on its market capitalization, or total value of outstanding shares, rather than bottom up which evaluates securities based on their individual fundamentals.

How do you determine what percentage weighting each company has within an equity portfolio using a top down evaluation method like that used by SBWEI Indexes?

You would multiply the number of outstanding shares by its price per share to get its market capitalization and then divide it by all other companies' market capitalizations combined to find out how much weighting it should have relative to all other companies included in your portfolio.

Which type of evaluation method does this article describe for determining weights for each company included in the SBWEI Index?

Top Down Approach

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