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:

Administrative Costs

Expenses related to the general operations of a business that are not directly tied to the production of goods or services.

Direct Material

Raw materials that can be directly traced to the production of a specific product.

Product Costs

Costs that are considered to be directly associated with the production of goods or services, including direct labor, direct materials, and manufacturing overhead.

Depreciation

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value due to wear and tear, age, or obsolescence.