Stock Market Indexes

question 3

Multiple Choice

Stock market indexes:

• A)are all computed using the same methodology.
• B)all react the same to a change in the price of a particular stock.
• C)all cover the same market sectors.
• D)are all price-weighted.
• E)vary in the type of stocks included.

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Definitions:

Legitimate Power

Legitimate Power is authority that is officially sanctioned or accepted due to a person’s position or role within an organization or system.

Referent Power

A form of influence where a person elicits compliance or admiration from others based on charisma or personal traits rather than formal authority.

Legal-Rational

A form of authority based on established laws, rules, and procedures that are designed to be objective and impersonal.

Traditional Power

Power that is derived from established customs, practices, or institutions historically recognized within a society or organization.