Which of the Following Indexes Would Best Reflect the Performance

question 20

Multiple Choice

Which of the following indexes would best reflect the performance of a large, diversified portfolio with equal amounts of money invested in each company.

• A) The Dow Jones Industrial Average
• B) The Russell 3000
• C) The NASDAQ 100
• D) The Value Line Composite Index

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Definitions:

Profit-maximizing Equilibrium

A state in which a firm achieves the highest possible profit, given its production costs and market conditions.

Appliance Manufacturer

A company that produces electrical machines and devices for domestic use.

Variable Resources

Inputs or factors of production that can be adjusted in the short term to meet changes in the level of output, such as labor and raw materials.

MRPs

Marginal revenue products, a measure of the additional revenue generated by employing an additional unit of a resource or factor of production.