TABLE 3-11

question 67

Multiple Choice

TABLE 3-11
Given below are the closing prices for the Dow Jones Industrial Average (DJIA) and the Standard & Poor's (S&P) 500 Index over 10 weeks.

-Referring to Table 3-11, you will expect an increase in the DJIA to be associated with

• A) an increase in the S&P 500 index.
• B) a decrease in the S&P 500 index.
• C) no predictable change in the DJIA.
• D) no predictable change in the S&P 500 index.

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Definitions:

Financial Asset

An intangible asset representing a claim on future benefits or returns, examples include stocks, bonds, and bank deposits.

Real Asset

Physical or tangible assets that have value due to their substance and properties.

Pass-Through Mortgage Security

A type of asset-backed security that is secured by a pool of mortgage loans, where payments from borrowers pass through to investors.

Issuing Agency

The government or corporate entity that issues securities for the purpose of raising capital.