Which of the following is generally used to measure the market when calculating betas?
A) The Dow Jones Industrial Average
B) The Standard & Poors 500 Index
C) The Value Line Quantam Index
D) The Case Schiller Housing Index

Question

Quizplus · Accepted Answer

The most commonly used index to measure the market is the Standard & Poors 500 Index, which includes 500 large-cap stocks widely considered representative of the overall market. The Dow Jones Industrial Average is also sometimes used, but it only includes 30 stocks and may not be as representative. The Value Line Quantam Index and the Case Schiller Housing Index are not typically used to measure the overall market.

Which of the Following Is Generally Used to Measure the Market