Which One of the Following Statements Related to Stock Indexes

question 79

Multiple Choice

Which one of the following statements related to stock indexes is correct?

• A)The index divisor increases in value whenever a stock in the index undergoes a stock split.
• B)A value-weighted index includes both dividends and capital gains.
• C)The S&P 500 index is value-weighted.
• D)The DJIA is value-weighted.
• E)Index staleness is more apt to be a problem for the DJIA than for the Wilshire 5000.

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Definitions:

Maximum Penalty

The highest punishment or fine that can be imposed for a particular offense under the law.

Classified

Information that has been officially categorized as confidential, secret, or top secret to protect national security or interests.

Felony

A category of serious crime that carries more severe penalties, often including imprisonment for more than one year.

Rape

The act of engaging in sexual intercourse or any form of sexual penetration without the consent of the other person.