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A stock with high price per share has a greater impact on a market capitalization index...

A stock with high price per share has a greater impact on a market capitalization index relative to its impact on a price weighted index: Comment

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No the statement is not correct as market capitalisation index is a index where individual stock or securities are weighted according to their market capitalisation which is total market value of the firm's outstanding share.In this index the firm's having more market capitalisation will have more weightage in the index wheras in price weighted index each company makes proportion to the index to that company's share price which means that in this index share prices of all companies are added in the index and dividing it by total number of companies which means the companies having high price per share will have more weightage in the index.Hence we can say that higher price per share has a greater impact on a price weighted index in comparison to market capitalisation index.

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