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

---

Definitions:

Public Policy

Principles and standards considered by the government to be of benefit to the community and used as a guide for legislative action.

Noncompetition Clauses

Provisions in employment contracts that prevent employees from entering into competition with their employer for a certain period after leaving the company.

Public Policy

Principles and standards accepted by the majority of citizens and used by legislators, judges, and public officials to guide their actions and decisions.

Illegal Contract

An agreement between parties that is prohibited by law or public policy, rendering it unenforceable.