If an Investor's Portfolio Is Comprised of a Broad Range

question 52

Multiple Choice

If an investor's portfolio is comprised of a broad range of common stocks, the best measure to use as a basis of comparison of performance is the

• A) Dow Jones Industrial Average (DJIA).
• B) S&P 500 index.
• C) Dow Jones Corporate Bond Index.
• D) American Stock Exchange utilities index.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has relied upon it to their detriment.

Preexisting Duty

An obligation or duty that already exists under contract law and does not constitute valid consideration for a new agreement.

Rescission

The act of canceling, voiding, or annulling a contract, returning the parties to their positions prior to the contract.

Usury

Charging an illegal rate of interest.