You Decide to Purchase an Equal Number of Shares of Stocks

question 49

Multiple Choice

You decide to purchase an equal number of shares of stocks of firms to create a portfolio.If you wished to construct an index to track your portfolio performance your best match for your portfolio would be to construct a/an ______.

• A) value weighted index
• B) equal weighted index
• C) price weighted index
• D) bond price index

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Definitions:

Universal Motor

An electric motor that can operate on either AC or DC power, commonly found in household appliances.

Wound Armature

An armature with coils wound around its laminated core, typically part of an electric machine, that interacts with the magnetic field to generate motion or electricity.

Compensating Winding

A winding used in electrical machines to reduce unwanted effects of armature reaction, improving performance.

Neutral Plane

The region in a rotating electrical machine where the magnetic field does not induce any electromotive force in the armature.