In Practice Which Market Index Is Most Widely Used as a Proxy

question 9

Multiple Choice

In practice which market index is most widely used as a proxy for the Canada market portfolio in the CAPM?

• A) Dow Jones Industrial Average
• B) Wilshire 5000
• C) S&P/TSX Composite Index
• D) Canadian Treasury Bill

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Definitions:

Sufficient Funds

The necessary amount of money available to complete a transaction or meet financial obligations.

Liable

Being legally responsible or obligated to make amends for harm caused to another person or property.

Drawee

The party upon whom a check, draft, or other negotiable instrument is drawn and is expected to pay.

Drawer

In banking and finance, the person who writes or issues a check or draft.