The Value of a Standard & Poor's Index Is Computed

question 114

Multiple Choice

The value of a Standard & Poor's Index is computed by

• A) dividing the sum of the closing share prices by an adjusted divisor.
• B) dividing the sum of the closing share prices by a divisor and then multiplying the quotient by 100.
• C) dividing the sum of the current market value of all the stocks in the index by the market value of the stocks in the base period and then multiplying the quotient by 100.
• D) dividing the sum of the current market value of all the stocks in the index by the market value of the stocks in the base period and then multiplying the quotient by 10.

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Definitions:

Admission

The act of conceding to a point in an argument or acknowledging the truth of a claim, or the allowance into a place, organization, or institution.

Parol Evidence Rule

A legal principle that prevents parties from presenting extrinsic evidence to modify, vary, or contradict the terms of a written contract.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another party, if the latter has relied on that promise to their detriment.

Parol Evidence Rule

A legal rule that excludes the admission of oral statements, written agreements outside the contract, or preliminary agreements in interpreting a written contract.