In Addition to the Number of Stocks Represented, a Difference

question 23

Multiple Choice

In addition to the number of stocks represented, a difference between the TSX 300 and the Dow is that the TSX 300:

• A)Dates back to the 19^th century while the Dow is a recent innovation
• B)Is value-weighted while the Dow is an equal-weighted index
• C)Includes foreign stocks while the Dow is domestic
• D)Index includes dividends in its return while the Dow does not

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Definitions:

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Bottling Company

A company involved in the business of packaging beverages for distribution and sale.

Global Market

The international marketplace where goods, services, currencies, and information are exchanged across national boundaries.

Tariffs

Taxes on foreign products that discourage imports.