Assume That the S&P 500 Composite Stock Index Is 995

question 41

Multiple Choice

Assume that the S&P 500 composite stock index is 995.50. This means that

• A) the share prices of the shares in the index have risen 995.50 times since 1941.
• B) the average share in the index is selling for $99.55.
• C) an investor would have to pay $995.50 to purchase one share of each of the shares represented in the index.
• D) the market values of the shares in the index increased by a factor of 99.55 since the 1941-1943 base period.

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