Which of the following indices would be most appropriate as a benchmark portfolio for a large-cap mutual fund?
A)Wilshire 5000.
B)S&P 500.
C)Dow Jones Industrial Average.
D)Russell 2000.

Question

Quizplus · Accepted Answer

The S&P 500 contains 500 large-cap companies and is widely recognized as a benchmark for large-cap mutual funds. The Wilshire 5000 includes all U.S. equities, which includes small-cap and mid-cap companies, the Dow Jones Industrial Average only includes 30 large-cap companies, and the Russell 2000 is a benchmark for small-cap companies.

Which of the Following Indices Would Be Most Appropriate as a Benchmark