In Practice Which Market Index Would Best Be Used as a Proxy

question 80

Multiple Choice

In practice which market index would best be used as a proxy for the market portfolio in the CAPM?

• A) S&P 500
• B) Dow Jones Industrial Average
• C) Canadian Treasury Bill
• D) Wilshire 5000

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Definitions:

Valued Rewards

Incentives or recognition that hold significant meaning or worth to an individual or group, motivating behavior and fostering a sense of achievement and satisfaction.

Job Performance

The level of effectiveness and efficiency with which an individual fulfills their job responsibilities and tasks.

Expectancy Theory

A motivational theory that proposes individuals are motivated to act in a certain way based on their expectation that their actions will lead to a desired outcome.

Goal Setting

The process of defining specific, measurable, and time-targeted objectives to be achieved by an individual, team, or organization.