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:

Gregariousness

The quality of being sociable, outgoing, and enjoying the company of others.

Assertiveness

The quality of being self-assured and confident without being aggressive, in expressing one’s needs and opinions.

Evolutionary Psychologists

Researchers who study how evolutionary theory explains psychological traits and behaviors, asserting that many human psychological systems, including memory, perception, and language, serve evolved adaptive purposes.

Reproduction

The biological process by which new individual organisms are produced, either sexually or asexually.