Using the S&P 500 Portfolio as a Proxy of the Market

question 51

Multiple Choice

Using the S&P 500 portfolio as a proxy of the market portfolio

• A)is appropriate because U.S.securities represent more than 60% of world equities.
• B)is appropriate because most U.S.investors are primarily interested in U.S.securities.
• C)is appropriate because most U.S.and non-U.S.investors are primarily interested in U.S.securities.
• D)is inappropriate because U.S.securities make up less than 40% of world equities.
• E)is inappropriate because the average U.S.investor has less than 20% of her portfolio in non-U.S.equities.

Grasp the relationship between financial policy decisions and their impact on financial stability.

Understand the roles and functions of investment banks in the issuance of new stocks and bonds.

Comprehend the disadvantages and regulatory requirements associated with a company going public.

Distinguish between primary and secondary markets for securities.

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Definitions:

Nonverbal Communication

The process of conveying a message without the use of words, through body language, facial expressions, and gestures.

Minutes

The official written record of the discussions and decisions made during meetings.

Professional Talking

The practice of communicating using business-appropriate language and terminology.

Phone Techniques

Methods or strategies used to communicate effectively and professionally during telephone conversations.