Quote Originally Posted by TraderD View Post
Thanks, Pascal, I understand the equal weighting of EV across all sectors, each comprised of different aggregate market caps.

To keep numbers round, say you have a choice of 1000 stocks for 100 sectors out of a population of 10,000 stocks of *different* market caps. If I were to draw a different representative subset of stocks for each sector (on average, only a 1/10th of the overall population will be utilized) and then calculate the equally-weighted EV (or 20DMF), would I possibly get drastically different results?

Trader D
I do not know! Maybe you'll get similar results. maybe not. What else can I say. We would really need to test that idea. This is a pretty big work.

Pascal