An Index Is Valued on a Daily Basis

question 34

Multiple Choice

An index is valued on a daily basis. However, some stocks in this particular index have not traded recently. As a result, this index suffers from index:

• A)fatigue.
• B)devaluation.
• C)flatness.
• D)staleness.
• E)weighting.

---

Definitions:

Devalues Its Currency

A country intentionally lowering the value of its national currency relative to other currencies to boost exports and improve its trade balance.