Assume That the S&P 500 Composite Stock Index Is 995

question 38

Multiple Choice

Assume that the S&P 500 composite stock index is 995.50.This means that

• A) the average stock in the index is selling for $99.55.
• B) an investor would have to pay $995.50 to purchase one share of each of the stocks represented in the index.
• C) the market values of the stocks in the index increased by a factor of 99.55 since the 1941-1943 base period.
• D) the share prices of the stocks in the index have risen 995.50 times since 1941.