1-42 of 42
What is the S&P 500?
An index that follows the prices of the 500 largest stocks
What does choosing to index mean toward the owners of the portfolio in regards to
market efficiency?
, -If they choose to index, they are implementing a strategy on market
efficiency, hence they hold the market portfolio and try to keep costs low
What is the benefit of diversification? What condition must be met before a benefit
from diversification occurs?
-It reduces risk for the same returns. The correlation coefficient must be
less than 1
Which funds would consist mainly of stocks with low dividends with an emphasis on
growth?
Those that are labeled as Growth
Arithmetic Mean
-Higher than or the same as the geometric mean
-Diverges more with higher negative returns against geometric mean
What is the S&P 500?
An index that follows the prices of the 500 largest stocks
What does choosing to index mean toward the owners of the portfolio in regards to
market efficiency?
, -If they choose to index, they are implementing a strategy on market
efficiency, hence they hold the market portfolio and try to keep costs low
What is the benefit of diversification? What condition must be met before a benefit
from diversification occurs?
-It reduces risk for the same returns. The correlation coefficient must be
less than 1
Which funds would consist mainly of stocks with low dividends with an emphasis on
growth?
Those that are labeled as Growth
Arithmetic Mean
-Higher than or the same as the geometric mean
-Diverges more with higher negative returns against geometric mean
