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Assume That the S&P 500 Composite Stock Index Is 995

Question 58

Multiple Choice

Assume that the S&P 500 composite stock index is 995.50.This means that


A) the average stock in the index is selling for $99.55.
B) an investor would have to pay $995.50 to purchase one share of each of the stocks represented in the index.
C) the market values of the stocks in the index increased by a factor of 99.55 since the 1941-1943 base period.
D) the share prices of the stocks in the index have risen 995.50 times since 1941.

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