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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