In Addition to the Number of Stocks Represented, a Difference

question 65

Multiple Choice

In addition to the number of stocks represented, a difference between the TSX 300 and the Dow is that the TSX 300:

• A)dates back to the 19th century while the Dow is a recent innovation.
• B)is value-weighted while the Dow is an equal-weighted index.
• C)includes foreign stocks while the Dow is domestic.
• D)index includes dividends in its return while the Dow does not.

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Definitions:

Specialization of Production

The process in which individuals, firms, or countries focus on producing a limited range of goods or services to gain economies of scale or advantages by virtue of unique skills, resources, or technology.

Economic Wealth

The accumulation of valuable resources and assets, including money, property, and investments, that contribute to an individual's or nation's economic power and living standard.

Economic Freedom

The ability of individuals to make their own economic decisions, including the decisions to buy, sell, and produce, with minimal government intervention.

Heritage Foundation

A conservative think tank based in the United States that conducts research and advocacy on public policy issues.