For Our Historical Comparison Purposes,how Are Large-Company Stocks Defined

question 63

Multiple Choice

For our historical comparison purposes,how are large-company stocks defined?

• A)Stocks of the lowest 20 percent of the firms listed on the NYSE based on market capitalization
• B)Stocks with average annual returns that exceed the average annual return of the U.S.Treasury bill
• C)Any firm that has been listed on the NYSE for 40 years or more
• D)Stocks of firms included in the S&P 500 composite index
• E)Stocks of firms that employ over 5,000 employees

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Definitions:

Trade

The exchange of goods, services, or both within and between countries.

Specialize

To focus on a particular area of production or work, allowing for increased efficiency and expertise in that area.

Scarcity of Resources

The fundamental economic problem of having seemingly unlimited human wants in a world with limited resources.

Necessity of Choice

An economic principle stating that due to scarce resources, individuals and societies must make decisions on how to best allocate those resources.