The Vanguard 500 Index Fund Tracks the Performance of the S&P

question 52

Multiple Choice

The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in each S&P 500 company ________.

• A)in proportion to the market value weight of the firm's equity in the S&P500
• B)in proportion to the price weight of the share in the S&P500
• C)by purchasing an equal number of shares of each share in the S&P 500
• D)by purchasing an equal dollar amount of shares of each share in the S&P500

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Definitions:

Drug Dependence

Drug dependence is a condition characterized by a compulsive need to use a substance despite harmful consequences, often leading to addiction.

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, leading to a range of health and social problems.

Morally Weak

Refers to a lack of strong ethical or moral principles in an individual, often leading to behavior that is considered unethical or immoral.

Addictive Substances

Chemical compounds that can lead to physical or psychological dependency.