TABLE 3-10

question 40

Multiple Choice

TABLE 3-10
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 3-10, 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:

Provincial Tax Brackets

The divisions at which tax rates change in a progressive tax system within specific provinces or territories.

Non-Eligible Dividends

Dividends that do not qualify for the dividend tax credit in certain jurisdictions, typically paid by companies that pay tax at a rate that is lower than the standard corporate tax rate.

Capital Gains

The profit earned from the sale of an asset or investment, which is the difference between the selling price and the purchase price.

Marginal Tax Rates

The rate at which an individual's or entity's additional income is taxed.