If an investor's portfolio is comprised of a broad range of common stocks, the best measure to use as a basis of comparison of performance is the
A) Dow Jones Industrial Average (DJIA).
B) S&P 500 index.
C) Dow Jones Corporate Bond Index.
D) American Stock Exchange utilities index.

Question

Quizplus · Accepted Answer

The S&P 500 index is the best measure for comparing the performance of a diversified portfolio of common stocks because it includes a broad representation of the market by incorporating 500 of the largest companies across various industries in the United States.

If an Investor's Portfolio Is Comprised of a Broad Range