Which Index Is Most Appropriate as a Benchmark for a Large-Cap

question 8

Multiple Choice

Which index is most appropriate as a benchmark for a large-cap mutual fund?

• A) Wilshire 5000
• B) S&P 500
• C) Dow Jones Industrial Average
• D) Russell 2000

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Definitions:

Interquartile Range

The difference between the 75th (third quartile) and 25th (first quartile) percentiles, measuring the spread of the middle 50% of data.

Coefficient of Variation

A standardized measure of dispersion of a probability distribution or frequency distribution, expressed as a ratio of the standard deviation to the mean.

Extreme Values

Data points that significantly differ from other observations. They can be unusually high or low and may be considered outliers.

Median

The middle value in a sorted, ascending or descending, list of numbers.