An Index Consists of the Following Securities

question 90

Multiple Choice

An index consists of the following securities.What is the value-weighted index return?

• A) 3.72 percent
• B) 5.09 percent
• C) 6.61 percent
• D) 7.07 percent
• E) 8.17 percent

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Definitions:

Shares of Stock

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Borrowers Sell

A term that is not typically used in economics; likely refers to the action of borrowers selling assets to meet debt obligations.

Real Capital

Physical assets like buildings, machinery, and equipment used in the production of goods and services, excluding financial assets and human capital.

Past Saving

The accumulation of previously saved money or assets that can be used for future investments or expenditures.