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

question 69

Multiple Choice

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

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

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Definitions:

Positive Charge

A type of electric charge carried by protons and indicative of a deficiency of electrons.

Proton

A subatomic particle found in the nucleus of an atom, carrying a positive electrical charge.

Atom

The smallest part of an element that contains all the properties of that element.

Current Flows

Current flows refer to the movement of electric charge carriers, such as electrons, through a conductor or circuit, driven by a voltage difference.