Considering the S&P 500 Index, If Each Company's Stock Price

question 93

Multiple Choice

Considering the S&P 500 Index, if each company's stock price increased by 10%:

• A)The weights in the index would remain the same
• B)The companies with the most shares outstanding would have even greater weight after the increase
• C)The companies with fewer shares would gain more weight at the expense of the companies with greater shares
• D)The weights in the index would change to reflect the percentage changes in the prices of the various stocks

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Definitions:

Pension Benefits Standards Act

Legislation regulating private sector pension plans, setting minimum standards for funding, governance, and the rights of plan participants.

Private Pension Plan

A retirement plan established by an employer or a union that provides an income to employees after retirement, funded primarily through employer contributions.

GST

Goods and Services Tax; a value-added tax levied on most goods and services sold for domestic consumption.

Child Care Benefits

Assistance provided by employers or government entities to employees for child care, aiming to support working parents.