An Index Consists of the Following Securities

question 50

Multiple Choice

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

• A) 13.67 percent
• B) 15.03 percent
• C) 15.49 percent
• D) 17.82 percent
• E) 19.67 percent

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Definitions:

Portfolio Risk

The uncertainty or potential for financial loss in an investment portfolio due to market volatility.

Constant

A fixed value that does not change in a particular context or mathematical equation.

M-Squared Measure

A performance metric that measures the return of a portfolio, adjusted for risk, compared to a benchmark.

Risk-Adjusted Return

A measure of an investment's return that accounts for the level of risk taken, allowing for the comparison of investments with different risk levels.