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Which of the Following Limits the Usefulness of the S&P

Question 23

Multiple Choice

Which of the following limits the usefulness of the S&P 500 Index as a market benchmark?


A) It is too heavily weighted with NYSE stocks to be representative.
B) It is too difficult to calculate for the average investor.
C) Its use of a base year in its calculations affects its performance.
D) Its performance can be greatly affected by a small number of stocks.

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