What is the primary factor that influences the returns of an index, regardless of the number of stocks it includes? Option: The historical performance of the individual stocks, The frequency of stock trading within the index, The weights assigned to each stock in the index, The overall market sentiment and economic conditions

<< Back

Hi

Show Ans

i

What is the primary factor that influences the returns of an index, regardless of the number of stocks it includes?

The historical performance of the individual stocks

The frequency of stock trading within the index

The weights assigned to each stock in the index

The overall market sentiment and economic conditions

<< Back

Hi

Show Ans

i

How are stock market indices typically calculated?

"Based on the trading volume of the most active stocks"

"By a weighted average, often based on price or market capitalization"

"Using a simple average of all stock prices in the index"

"Through a complex algorithm considering economic indicators"

<< Back

Hi

Show Ans

i

Which of these indices is price-weighted?

"Nasdaq Composite"

"Wilshire 5000"

"S&P 500"

"Dow Jones Industrial Average"

<< Back

Hi

Show Ans

i

How is the expected return of a portfolio calculated?

Sum of each stock's average return multiplied by its weight and the number of trading days

Sum of individual stock returns divided by the number of stocks

Daily return of the portfolio multiplied by the number of trading days

Average return of the stock with the highest weight

<< Back

Hi

Show Ans

i

Which of the following factors influences the market value of a stock?

"The number of employees a company has."

"The demand and supply dynamics of the stock."

"The personal opinions of financial analysts."

"The location of a company's headquarters."

<< Back

Hi

Show Ans

i

What is the primary factor that determines the price of a stock in the share market?

Company's financial performance

Government regulations

Demand and supply of the stock

Media sentiment