Averages and Indexes Differ from One Another in That an Index

question 17

Multiple Choice

Averages and indexes differ from one another in that an index

• A) is the arithmetic average price behavior of a group of stocks at a given point in time.
• B) measures the current price behavior of a group of stocks in relation to a base value set at an earlier point in time.
• C) is of value in-and-of itself, whereas an average must be compared to a historical figure to have any meaning.
• D) always moves up before a corresponding average moves up, and always moves down before a corresponding average moves down.

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