Using the S&P 500 Portfolio as a Proxy of the Market

question 42

Multiple Choice

Using the S&P 500 portfolio as a proxy of the market portfolio

• A)is appropriate because U.S.securities represent more than 60% of world equities.
• B)is appropriate because most U.S.investors are primarily interested in U.S.securities.
• C)is appropriate because most U.S.and non-U.S.investors are primarily interested in U.S.securities.
• D)is inappropriate because U.S.securities make up less than 41% of world equities.

---

Definitions:

Work Ethic

The belief in the value of hard work and its ability to enhance character, often considered a virtue in various cultural and organizational contexts.

Coch and French

Researchers known for their study on worker participation in management decisions, highlighting the importance of involving employees in organizational change processes.

Venture

An undertaking involving risk or uncertainty, typically in a business context aiming for financial profit or growth.

Board of Directors

A group of individuals elected to represent shareholders and oversee the management and operations of an organization, making strategic decisions.