In a Price Weighted Average Stock Market Indicator Series, the Following

question 62

Multiple Choice

In a price weighted average stock market indicator series, the following type of stock has the greatest influence:

• A) the stock with the highest price.
• B) the stock with the lowest price.
• C) the stock with the highest market capitalization.
• D) the stock with the lowest market capitalization.
• E) the stock with the highest P/E ratio.

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Definitions:

Full Disclosure Principle

A fundamental accounting principle requiring that financial statements provide all necessary information to stakeholders to understand a firm's financial condition.