The S & P 500 Index is an appropriate benchmark for
A) diversified portfolios of large company stocks.
B) portfolios diversified among several asset classes such as stocks, bonds, and real estate.
C) diversified portfolios with a mix of large, small, and mid-cap stocks.
D) diversified portfolios of mid-cap and small company stocks.

Question

Quizplus · Accepted Answer

The S&P 500 Index is a market-capitalization-weighted index of 500 of the largest publicly traded companies in the U.S. It is most appropriate as a benchmark for diversified portfolios of large company stocks, as it reflects the performance of major industries and is considered a leading indicator for the U.S. economy.

The S & P 500 Index Is an Appropriate Benchmark