In addition to the number of stocks represented,a difference between the TSX 300 and the Dow is that the TSX 300: A) dates back to the 19^th century while the Dow is a recent innovation. B) is value-weighted while the Dow is an equal-weighted index. C) includes foreign stocks while the Dow is domestic. D) index includes dividends in its return while the Dow does not.

Question

Quizplus · Accepted Answer

The TSX 300 is a value-weighted index, meaning that the stocks with the largest market capitalizations have a greater impact on the index's value. The Dow, on the other hand, is an equal-weighted index, meaning that all of the stocks in the index have the same impact on its value.

In Addition to the Number of Stocks Represented,a Difference Between