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:

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