The NASDAQ Composite Includes

question 71

Multiple Choice

The NASDAQ Composite includes

• A) all of the stocks listed on the NASDAQ Stock Exchange.
• B) 30 of the largest (market capitalization) and most active companies in the U.S. economy.
• C) 500 firms that are the largest in their respective economic sectors.
• D) 500 firms that are the largest as ranked by Fortune Magazine.

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Definitions:

Asset Beta

A measure of the systematic risk of a firm's assets, used in the Capital Asset Pricing Model (CAPM) to determine the expected return of the asset.

Market Rate

Market rate, in economics, refers to the prevailing price of goods, services, or labor in a competitive market, determined by supply and demand dynamics.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.