Which of the Following Statements Is Most Correct

question 46

Multiple Choice

Which of the following statements is most correct?

• A)The Dow Jones Industrial Average is market-value weighted.
• B)The Dow Jones Industrial Average is a good benchmark by which to measure the performance of investment managers.
• C)The 500 stocks comprising the S&P 500 are the largest 500 firms.
• D)The 60 largest capitalization stocks in the S&P 500 account for over half of the market value of the index.Indexes exist for the bond market.

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Definitions:

Metropolitan Opera

A leading American opera company based in New York City, known for its live performances and international broadcasts.

Perfect Competitor

A perfect competitor refers to a market participant in a perfectly competitive market, characterized by many buyers and sellers, all dealing in a homogenous product with no barriers to entry or exit.

Entire Market

The total comprehensive scope of a marketplace, encompassing all buyers, sellers, and products involved.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.