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:

Ecclesiastes

A book of the Hebrew Bible and the Christian Old Testament, reflecting on the meaning of life and the best way to live.

Vanity and Vexation of Spirit

An expression referring to the pursuit of goals that do not result in satisfaction, derived from Ecclesiastes in the Bible, highlighting the futility of human endeavors.

Friedrich von Schelling

A German philosopher known for his contributions to idealism in the late 18th and early 19th centuries.

God's Work of Art

A metaphorical expression suggesting that something or someone is created with extraordinary skill, beauty, or significance, often implying divine inspiration or craftsmanship.