There Is a High Correlation Between the Wilshire 5000 Index

question 15

True/False

There is a high correlation between the Wilshire 5000 index and the alternative NYSE series (S&P 500 and the NYSE),representing the substantial influence of large NYSE stocks on the Wilshire 5000 index.

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Definitions:

Financial Intermediaries

Entities such as banks, insurance companies, and investment firms that facilitate transactions between savers and borrowers by channeling funds from those who save to those who need to borrow.

Commercial Banks

Financial institutions that accept deposits from the public, offer various savings products, and provide loans including personal, mortgage, and business loans.

Insurance Companies

Businesses that provide coverage, in the form of compensation resulting from loss, damages, injury, treatment, or hardship in exchange for premium payments.

Money Market Security

Short-term financial instruments, typically debt-based, that are highly liquid and considered to have low risk.