Which of the Following Is an Advantage of the S&P

question 101

Multiple Choice

Which of the following is an advantage of the S&P 500 index?

• A) The S&P 500 tracks the price of the stock, not just the value of the company.
• B) The S&P 500 tracks the overall value of a company, not just the price of the stock.
• C) The S&P 500 provides more historical data than the Dow Jones Industrial Average.
• D) The S&P 500 resets to 1,000 at the beginning of each year.
• E) The S&P 500 tracks fewer companies than the Dow Jones Industrial Average, making it less complicated.

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Definitions:

Discretionary Spending

Expenditures made at the discretion of a business or individual, which are non-essential and can be adjusted or eliminated.

Accounting-Based Incentives

Compensation schemes for employees or executives that are tied to accounting performance measures, such as earnings or return on assets.

Executive Compensation

The total remuneration package provided to executives, including salary, bonuses, shares, options, and other benefits.

Discretion Over

Having the authority to make decisions and judgments in certain situations without the need for specific authorization.