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.

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Definitions:

Operating Activities

Transactions related to the core business functions of a company, such as sales and purchase of goods and services.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.

Statement Of Cash Flows

A financial document summarizing total cash inflows from operational activities and external investments alongside outflows for business operations and investment expenditures over a specific timeframe.

Investing Activities

Finance-related activities in a company that involve acquiring or disposing of long-term assets.