Which One of the Following Statements Related to Stock Indexes

question 79

Multiple Choice

Which one of the following statements related to stock indexes is correct?

• A)The index divisor increases in value whenever a stock in the index undergoes a stock split.
• B)A value-weighted index includes both dividends and capital gains.
• C)The S&P 500 index is value-weighted.
• D)The DJIA is value-weighted.
• E)Index staleness is more apt to be a problem for the DJIA than for the Wilshire 5000.

---

Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum quantity of goods and services that can be produced within a given time period and set of resources, assuming full and efficient use of those resources.

Terrorist Attacks

Violent actions perpetrated by individuals or groups with the aim of instilling fear or achieving political, religious, or ideological goals.

Homeland Security

Homeland security refers to the concerted national effort to prevent terrorist attacks within a country, reduce a country's vulnerability to terrorism, and minimize the damage from attacks that do occur.

War on Terrorism

A global campaign launched by the United States in response to the September 11, 2001 terror attacks, aiming to eliminate international terrorism.