You Decide to Purchase an Equal Number of Shares of Stocks

question 70

Multiple Choice

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

• A) a value-weighted index
• B) an equally weighted index
• C) a price-weighted index
• D) a bond price index

---

Definitions:

Neutral Third Party

An independent entity not involved or favoring any side in a disagreement or dispute, often used to facilitate negotiations or mediate conflicts.

Employer Misconduct

Unethical or illegal actions taken by employers, such as violating labor laws or mistreating employees.

Fair Election

An election conducted impartially to assure an honest and accurate tally of votes to decide a winner.

Visiting Employees

Employees who work in a location different from their usual workplace for a temporary period, often for business trips or assignments.