Which of the Following Statements About a Stock Index Is

question 4

Multiple Choice

Which of the following statements about a stock index is INCORRECT?

• A) A stock index is a hypothetical portfolio formed according to some criteria or rules.
• B) A stock index can be sold short.
• C) A stock index gives a quick sense of the performances of the market or a sector of the economy.
• D) A stock index provides a benchmark against which performance of fund managers are measured.
• E) A stock index can be used for creation of derivative products.

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Definitions:

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