In Practice Which Market Index Is Most Widely Used as a Proxy

question 69

Multiple Choice

In practice which market index is most widely used as a proxy for the market portfolio in the CAPM?

• A)Dow Jones Industrial Average
• B)Wilshire 5000
• C)S&P 500
• D)U.S.Treasury Bill

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Definitions:

Reporting

The process of formally documenting and communicating information, findings, or results to relevant stakeholders.

Values-based Culture

A corporate culture that is deeply rooted in a set of core values and principles which guide the behaviors and decisions of the organization.

Proactive Approach

Taking action in anticipation of future problems or needs rather than reacting to events after they occur.

Ethical Issues

Circumstances or problems faced by individuals or organizations that involve making a choice between actions that are judged to be morally right or wrong.