A stock index is
A)an average of a group of stock prices.
B)an average of a group of stock yields.
C)a measure of the risk relative to the profitability of corporations.
D)a report in a newspaper or other media outlet on the price of the stock and earnings of the corporation that issued the stock.

Question

Quizplus · Accepted Answer

A stock index is an average of a group of stock prices. It is calculated by taking the sum of the prices of a certain number of stocks and dividing it by a divisor to get an average. The purpose of a stock index is to provide a snapshot of the overall performance of a group of stocks. Some examples of popular stock indices include the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite.

A Stock Index Is