The S&P 500 Stock Index Is More Sensitive to Changes

question 10

True/False

The S&P 500 stock index is more sensitive to changes in the prices of small stocks than the stocks of large companies.

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Definitions:

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) with an interest rate that increases at predetermined intervals throughout the term.

Fixed-rate GIC

Guaranteed Investment Certificate with a fixed interest rate for the term of the investment.

Maturity

The date on which the principal amount of a financial instrument such as a bond or loan is due to be paid in full.

Forest Industry

The sector involved in the management, conservation, harvesting, processing, and sales of forests and forestry products.