Assume That the S&P 500 Composite Stock Index Closes at 2,500

question 80

Multiple Choice

Assume that the S&P 500 composite stock index closes at 2,500. This means that

• A) the average stock in the index is selling for $25.00.
• B) an investor would have to pay $2,500 to purchase one share of each of the stocks represented in the index.
• C) The average value of a company reflected in the Index has doubled from when the Index was at 1,250.
• D) the share prices of the stocks in the index have risen 25 times since the 1941-1943 base period.