Which of the Following Statements Is Incorrect Concerning Stock Indexes

question 28

Multiple Choice

Which of the following statements is incorrect concerning stock indexes?

• A)they have been developed for foreign stocks.
• B)they have been developed for smaller companies.
• C)indexes include all common stocks.
• D)some indexes are equal-weighted.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Risk Averse

The preference for certainty and the avoidance of risk in investments or economic decisions, often leading to choices that offer lower returns in exchange for reduced risk.

Comparable Good Outcomes

Situations where two or more goods or scenarios produce similarly beneficial effects or results.

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.