In practice which market index is most widely used as a proxy for the Canada market portfolio in the CAPM?
A) Dow Jones Industrial Average
B) Wilshire 5000
C) S&P/TSX Composite Index
D) Canadian Treasury Bill

Question

Quizplus · Accepted Answer

The most widely used index as a proxy for the Canada market portfolio is the S&P/TSX Composite Index. This index tracks the performance of Canadian equity markets and includes a broad range of companies across different sectors. The Dow Jones and Wilshire indices track US markets, and Canadian Treasury Bills are not an equity index.

In Practice Which Market Index Is Most Widely Used as a Proxy