A Stock Market Index in Which Stocks Are Held in Proportion

question 97

Multiple Choice

A stock market index in which stocks are held in proportion to their share prices is called a ___________ index.

• A) Balanced
• B) Market-weighted
• C) Diluted
• D) Price-weighted
• E) Value-weighted

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Definitions:

Warranty Of Merchantability

An implied guarantee that a product will meet reasonable standards of quality and performance.

Privity Of Contract

A doctrine in contract law which states that contracts are only binding on the parties signing the agreement and no third party can enforce the contract or be sued under it.

Strict Liability

A legal doctrine holding an individual or entity responsible for damages or harm caused without the need for proof of negligence or fault.

Modified

This term refers to something that has been changed or altered from its original form.