Which of the Following Limits the Usefulness of the S&P

question 54

Multiple Choice

Which of the following limits the usefulness of the S&P 500 Index as a market benchmark?

• A) It is too weighted with NYSE stocks to be representative.
• B) It is too to calculate for the average investor.
• C) Its use of a base year in its calculations affects its performance.
• D) Its performance can be greatly affected by a small number of stocks.

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Definitions:

Homogenization

The process of making things uniform or similar by blending, mixing, or assimilating diverse elements.

Hard Rock Cafe

A chain of theme restaurants known for its collection of rock and roll memorabilia and dedication to classic American cuisine set in a music-infused environment.

Cultural Imperialism

The act of advancing and enforcing a culture, typically belonging to a politically dominant country, upon a weaker society.

American Culture

The customs, norms, behaviors, and social practices characteristic of the United States, influenced by diverse ethnic populations and historical developments.