One of the Most Widely Followed Stock Indexes in the United

question 80

Multiple Choice

One of the most widely followed stock indexes in the United States is the S&P 500.This index represents

• A)the stock prices of 500 large U.S.firms.
• B)the stock prices of the 500 most valuable firms worldwide.
• C)the stock prices of more than 4,000 U.S.firms.
• D)the stock prices of 30 large U.S.corporations.

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Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 1 indicates certainty.

Random Variable

A variable with an uncertain future value.

Uncertain

The state of having incomplete knowledge or information, leading to unpredictability in outcomes and decision-making.

Economics

The social science that studies the production, distribution, and consumption of goods and services.