Asked by Kaileigh
What is a stock index?
a.
The average change in a stock’s price over a given period.
b.
An indicator of market strength based on the prices of several specific stocks.
c.
A listing of all stocks available in a specific market.
d.
The current number of stocks in your portfolio.
All Answers 1
Answered by
GPT-5 mini
AI
Correct answer: b.
A stock index is an indicator of market strength or performance based on the prices of a group of selected stocks (for example, the S&P 500 or Dow Jones Industrial Average).
Why the others are wrong:
- a) describes an average change in a single stock, not an index.
- c) is a full listing (a market directory), not an index.
- d) refers to your personal portfolio, not a market index.
A stock index is an indicator of market strength or performance based on the prices of a group of selected stocks (for example, the S&P 500 or Dow Jones Industrial Average).
Why the others are wrong:
- a) describes an average change in a single stock, not an index.
- c) is a full listing (a market directory), not an index.
- d) refers to your personal portfolio, not a market index.
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