Question

2. Which of the following regarding the stock indices is true?

A. The Dow Jones Industrial Average is affected equally by changes in low- and high-priced stocks.
B. The divisor for Dow Jones Industrial Average is always equal to 30
C.The return on Russell 3000 index is affected equally by price changes in small and large market capitalization stocks
D. The Wilshire 5000 index is a broad U.S. equity market index.

Answer 1

The correct answer is letter "D": The Wilshire 5000 index is a broad U.S. equity market index.

Step-by-step explanation:

The Wilshire 5000 is the broadest American-based stock index that includes over 6 700 publicly traded companies. Among all of them, companies with higher firm value have a bigger impact than those with lower value within the index. The Wilshire is mainly designed to keep track of the overall performance of the U.S. stock markets.