Although the TSX 300 Contains a Small Proportion of Canadian

question 60

Multiple Choice

Although the TSX 300 contains a small proportion of Canadian publicly traded stocks, it represents:

• A)All stocks that prefer to be equal-weighted
• B)All stocks that prefer to be value-weighted
• C)Approximately 50 percent of Canadian stocks traded, in value
• D)Approximately 70 percent of Canadian stocks traded, in value

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Definitions:

Yield to Maturity

The total expected return on a bond if held until its maturity date, considering all payments from interest and principal, expressed as an annual rate.

Mortgage Bonds

Bonds secured by a mortgage on a property, providing bondholders a claim against the property in case of default.

Debentures

A type of debt instrument that is not secured by physical assets or collateral but backed only by the general creditworthiness and reputation of the issuer.

Interest Expense

The cost incurred by an entity for borrowed funds, often quoted as an annual rate, and is typically deductible for tax purposes.