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

question 8

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)U.S.Treasury Bill
• D)Wilshire 5000

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Definitions:

Tetanus Toxoid

A vaccine used to provide immunity against tetanus by inducing the body to produce antibodies against the tetanus toxin.

Ice Pack

A pack filled with ice or a gel substance that's used to reduce swelling, pain, or to cool a body part.

Choking

An emergency situation where the airway is blocked, preventing normal breathing.

Severed Ear

A medical condition or injury involving complete or partial detachment of the ear from the rest of the head.