Which of the Following Is not a Use of Security

question 63

Multiple Choice

Which of the following is not a use of security market indicator series?

• A) To use as a benchmark of individual portfolio performance
• B) To develop an index portfolio
• C) To determine factors influencing aggregate security price movements
• D) To use in the measurement of systematic risk
• E) To use in the measurement of diversifiable risk

---

Definitions:

Common Stock

Holding shares in a company grants investors a portion of ownership, allowing them to vote on corporate matters and receive a portion of the profits via dividends.

Additional Paid-in Capital

The amount of equity capital that is invested in a company by shareholders over and above the par value of the shares.

Professional Corporation

A type of corporation typically formed by lawyers, doctors, and other professionals, where the company acts under corporate status but allows its members to maintain professional liability.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.