Stock market indexes:
A)are all computed using the same methodology.
B)all react the same to a change in the price of a particular stock.
C)all cover the same market sectors.
D)are all price-weighted.
E)vary in the type of stocks included.

Question

Quizplus · Accepted Answer

Stock market indexes vary in the type of stocks included. Some indexes, such as the S&P 500, include large-cap U.S. stocks, while others, such as the Russell 2000, include small-cap U.S. stocks. There are also international indexes, sector-specific indexes, and indexes that track specific themes, such as sustainability or technology.

Stock Market Indexes