If an Investor's Portfolio Is Comprised of a Broad Range

question 52

Multiple Choice

If an investor's portfolio is comprised of a broad range of common stocks, the best measure to use as a basis of comparison of performance is the

• A) Dow Jones Industrial Average (DJIA).
• B) S&P 500 index.
• C) Dow Jones Corporate Bond Index.
• D) American Stock Exchange utilities index.

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Definitions:

Total Assets

The sum of all resources owned by a company, valued in terms of the financial benefits they bring, and listed on the balance sheet.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including debts and other financial commitments.

Return on Total Assets

A financial ratio that measures a company's ability to generate net income from its total assets, indicating efficiency in asset use.

Total Assets

The sum of all resources owned by a company, valued and reported on the balance sheet, representing the total wealth of the company.