Question

What does "S&P index returns" mean exactly? I've never heard of "Index return" before

What does "S&P index returns" mean exactly? I've never heard of "Index return" before

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

S&P Index - Standard and Poor's is an American stock-based index based on the market capitalization of the stocks

Market capitalization - Number of outstanding shares of the company * Market price of the share

Index - the index is formulated to set a benchmark for the funds and also acts as the performance indicator for the economy.

S&P 500 is once such index which has a top market capitalization of 500 companies in the United States.

These returns can be shown daily, weekly, monthly or yearly to compare with the funds in the same investment strategy

S&P 500 Annual Return is at 11.48%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the 30yr and 10yr average return for S&P 500 index?
What is the 30yr and 10yr average return for S&P 500 index?
What should we use for expected market return? 10-year arithmetic average return of S&P 500 index....
What should we use for expected market return? 10-year arithmetic average return of S&P 500 index. 10-year geometric average return of S&P 500 index. 80-year arithmetic average return of S&P 500 index. 80-year geometric average return of S&P 500 index.
You run a regression of monthly returns of firm A on the S&P 500 index with...
You run a regression of monthly returns of firm A on the S&P 500 index with an expected return of 12% and obtain the following output: Intercept of the regression = 0.052 Coefficient on the market return = 0.5 a. What would an investor in firm A's stock require as a return, if the T-Bond rate is 2%? b. Did your stock perform better than the market? Explain.
You have the option to invest in an S&P 500 Index fund that guarantees the average...
You have the option to invest in an S&P 500 Index fund that guarantees the average performance of stocks in the index. Assume that exactly 500 companies are in the economy and thus beta for this index fund is equal to 1, while the expected return of this index fund is 20%. An alternative risk-free asset has a return rate of 10%. Using the straight-line tool, draw the market line that plots the relationship between expected returns and beta. Consider...
Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of how...
Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of how the index performs. Based on her current holdings, if the S&P 1500 index return is negative, her portfolio will beat the benchmark by 2%. However, if the S&P 1500 index return is positive, her portfolio is likely to underperform, earning only 90% of the index returns. What type of position in SPR index options or futures could Alison add to her current holdings in...
What is a brand? How would you explain the concept to someone who had never heard...
What is a brand? How would you explain the concept to someone who had never heard the term before? How would you explain what a brand is to a CEO who believes a brand is just a logo?And How does branding help both buyers and sellers?
1. (Chapter 2) Alison is an active portfolio manager attempting to beat the S&P 1500 index...
1. (Chapter 2) Alison is an active portfolio manager attempting to beat the S&P 1500 index regardless of how the index performs. Based on her current holdings, if the S&P 1500 index return is negative, her portfolio will beat the benchmark by 2%. However, if the S&P 1500 index return is positive, her portfolio is likely to underperform, earning only 90% of the index returns. What type of position in SPR index options or futures could Alison add to her...
1. What should we use for expected market return? a. 10-year arithmetic average return of S&P...
1. What should we use for expected market return? a. 10-year arithmetic average return of S&P 500 index. b. 10-year geometric average return of S&P 500 index. c. 80-year arithmetic average return of S&P 500 index. d. 80-year geometric average return of S&P 500 index.
For the S&P Stock Index of all major stocks, the mean P/E ratio is u=19.4. A...
For the S&P Stock Index of all major stocks, the mean P/E ratio is u=19.4. A random sample of 36 “socially conscious” stocks gave a P/E ratio sample mean of xbar= 17.9. Assume the standard deviation is σ=5.2. Use a hypothesis test at the a= 0.10 significance level to determine whether the mean P/E ratio for all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P Stock Index. what is the test statistic, p...
On March 1, 2008, the S&P 500 index was at 757.13. a) What is the S&P...
On March 1, 2008, the S&P 500 index was at 757.13. a) What is the S&P 500 index? b) Where is the S&P 500 index today (any date in April 2018 is fine)? c) If you had used $10,000 to purchase stocks that have changed in value by the same percentage as the S&P 500 index, how much would you have today? Please show your work. d) What impact do you think, this change in the S&P 500 index since...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT