Which of the Following Limits the Usefulness of the S&P

question 14

Multiple Choice

Which of the following limits the usefulness of the S&P 500 Index as a market benchmark?

• A)It is too weighted with NYSE stocks to be representative.
• B)It is too difficult to calculate for the average investor.
• C)Its use of a base year in its calculations affects its performance.
• D)Its performance can be greatly affected by a small number of stocks.

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Definitions:

Homesteads

Parcels of land granted by the government, often under conditions of residence and cultivation.

Andrew Johnson

The 17th President of the United States, who served from 1865 to 1869, known for his efforts in post-Civil War Reconstruction and conflicts with Congress.

Slaveholder

A person who owns slaves, historically involved in the forced labor system where individuals were owned and treated as property.