An Index Consists of the Following Securities

question 79

Multiple Choice

An index consists of the following securities. What is the value-weighted index return?

• A) 0.72 percent
• B) 1.09 percent
• C) 3.61 percent
• D) 5.75 percent
• E) 8.52 percent

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Definitions:

Increased Demand

Describes a situation where a larger number of consumers are willing and able to purchase a good or service at a given price, often leading to higher prices or a market shortage if supply does not increase correspondingly.

Price Ceiling

A legally established maximum price that can be charged for a good or service, preventing prices from reaching equilibrium levels.

Surplus

A situation where the quantity of a product supplied exceeds the quantity demanded, often resulting in a decrease in prices.

Shortage

A shortage occurs when the demand for a product exceeds the supply of that product at a specific price.