Question

1)What is one difference between the Dow Jones Industrial Average (the Dow) and the Standard and Poor’s (S&P) 500 index?

The S&P 500 provides more historical data than the Dow.

The Dow provides a much broader representation of the stock market than the S&P 500 does.

The S&P 500 provides data on 500 companies, and the Dow provides data on only 300 companies.

The Dow tracks the price of the stock, whereas the S&P 500 weighs the stock prices by the market value of the company.

The Dow weighs the stock prices by the market value of the company, whereas the S&P 500 tracks only the price of the stock

2 ) The interest rate of a bond is computed as a(n)

difference.

sum.

absolute

value.

multiplication.

Answer 1

Ans 1)

S&P 500 comprises 500 stocks whereas DJIA consists of 30 stocks hence statement 2 is false

DJIA tracks the price and uses simple average method whereas S&P 500 weighs stock prices by the market value of company

Hence option D is correct response

ANs 2)

Interest rate is just the absolute number (A good proxy of opportunity cost)

Option 3 is correct