The Value of a Standard & Poor's Index Is Computed

question 53

Multiple Choice

The value of a Standard & Poor's Index is computed by

• A)dividing the sum of the closing share prices by an adjusted divisor.
• B)dividing the sum of the closing share prices by a divisor and then multiplying the quotient by 100.
• C)dividing the sum of the current market value of all the stocks in the index by a divisor adjusted for changes in the companies composing the Index.
• D)dividing the sum of the current market value of all the stocks in the index by a divisor that adjusts for stock splits and scales the Index figure to a manageable size.

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Definitions:

Cycloocta-1,5-diene

A cycloalkene with eight carbon atoms and two double bonds located at the first and fifth positions.

Stereochemistry

A branch of chemistry concerned with understanding and describing the three-dimensional arrangement of atoms within molecules, particularly focusing on isomers.

Kinetic Conditions

Conditions affecting the rate of a chemical reaction, including temperature, concentration, and presence of catalysts.

Dicylopentadiene

An organic compound with the formula C10H12, known for its two fused cyclopentene rings, used in the manufacture of resins, insecticides, and perfumes.