All of the following are reasons that performance measures, such as averages and indexes, are important EXCEPT
A) investors want to know how well their investments are performing relative to the market as a whole.
B) financial managers need to know how their companies' securities are performing when compared with their competitors' securities.
C) they greatly diminish competition among companies' securities.
D) they indicate the performance of a particular securities market.
E) they provide a measure of the overall health of the economy.

Question

Quizplus · Accepted Answer

Investors, especially professional money managers, want to know how well their investments are performing relative to the market as a whole. Financial managers also need to know how their companies' securities are performing when compared with their competitors' securities. Thus, performance measures, such as averages and indexes, are very important to many different people. They not only indicate the performance of a particular securities market but also provide a measure of the overall health of the economy.

All of the Following Are Reasons That Performance Measures, Such