Question

1. What's short selling? 2. How's the S&P 500 Index compare to the Dow Jones Industrial...

1. What's short selling?

2. How's the S&P 500 Index compare to the Dow Jones Industrial Average?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.

SHort selling is sale of asset that is borrowed by the seller or not owned by the seller. It is done when the seller thinks prices are going to go down so he can make profit by selling high

2.

Dow Jones Industrial Average: Oldest and best known, 30 largest bluechip companies, price weighted...Criteria to be included in the list is vague.

S&P500: Started in 1957, newer than Dow Jones, 500 stocks from various sectors of the economy, market capitalisation weighted..Criteria to be included in the list is market capitalisation.

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
The S&P 500 and the Dow Jones Industrial Average indices are proxies for the broader US...
The S&P 500 and the Dow Jones Industrial Average indices are proxies for the broader US stock market. You notice one day that the S&P 500 closed UP by 0.20%, while the DJIA closed DOWN by 0.20%. Explain how it is possible for one proxy (S&P 500) to have a positive return while the other (DJIA) has a negative return on any given day. Include in your explanation some names that could have caused this discrepancy. Which return (S&P 500...
At 11:03 AM on July 16, 2020, the S&P 500 Index was down 0.71%, the Dow...
At 11:03 AM on July 16, 2020, the S&P 500 Index was down 0.71%, the Dow Jones Industrial Average was down 0.56% and the NASDAQ Composite Index was down 1.24%. Are any of these more accurate indicators of the day’s “market return” than the others? If so, why? If you followed the market regularly, to which index would you give the most credence and why?
Contrast the U.S. Dow Jones Industrial Average and the Standard & Poor's Composite Index on the...
Contrast the U.S. Dow Jones Industrial Average and the Standard & Poor's Composite Index on the issue of representativeness.
At 11:03 AM on July 16, 2020, the S&P 500 Index was down 0.71%, the Dow...
At 11:03 AM on July 16, 2020, the S&P 500 Index was down 0.71%, the Dow Jones Industrial Average was down 0.56% and the NASDAQ Composite Index was down 1.24%. Are any of these more accurate indicators of the day’s “market return” than the others? If so, why? If you followed the market regularly, to which index would you give the most credence and why? I dont need a super long description. Just to the point!
Match the description to the correct index. 1. An price-weighted average of 30 stocks. 2. The...
Match the description to the correct index. 1. An price-weighted average of 30 stocks. 2. The best measure of overall market performance. 3. A market-value weighted index heavily weighted in technology stocks. Dow Jones Industrial Average S&P 500 Nasdaq
25. 25.Suppose that you hold a portfolio consisting of three indices: the S&P 500, the Dow...
25. 25.Suppose that you hold a portfolio consisting of three indices: the S&P 500, the Dow Jones Industrial Average (DJIA), and the Russell 2000 index. The value of the investment in each index and the indexes on May 11, 2020, are as follows: IndexPortfolio ValueIndex on May 11, 2020S&P 5006,0002,930.19DJIA2,00024,221.99Russell 20002,0001,321.24Total10,000    These are the values of the indexes generated for May 12, 2020, under the first scenario: ScenarioS&P 500DJIARussell 200012,825.1324,397.201,357.04    What is a loss from the portfolio under...
The price-weighted Dow Jones Industrial Average Index closed at 12,500 today and the divisor was 0.14....
The price-weighted Dow Jones Industrial Average Index closed at 12,500 today and the divisor was 0.14. One of the 30 constituent stocks had a 5-for-1 stock split right declining from $100 to $20 per share right after the market close (immediately after the index value and divisor above were observed). What would the new divisor have to be to keep the index value unchanged at 12,500?     Group of answer choices 1) 0.1320 2) 0.1424 3) 0.1416 4) 0.1336
Let X denote the percentage increase in the Dow Jones Index in the coming year and...
Let X denote the percentage increase in the Dow Jones Index in the coming year and let Y denote the percentage increase in the S&P500 Index in the coming year. Suppose that X and Y obey a joint normal distribution and that the mean of X is 11% and its standard deviation is 13%, and the mean of Y is 10% and its standard deviation is 12%. Suppose that corr(X,Y) = 0.43. 1. What is the probability that the Dow...
The Dow Jones Industrial Average has had a mean gain of 432 pear year with a...
The Dow Jones Industrial Average has had a mean gain of 432 pear year with a standard deviation of 722. A random sample of 40 years is selected. What is the probability that the mean gain for the sample was between 200 and 500? 0.703 0.297 0.836 0.164
List a financial markets index, explain how it is constructed, and describe how it is used...
List a financial markets index, explain how it is constructed, and describe how it is used - starting with the Dow Jones Industrial Average, S&P 500, and NASDAQ. What are the differences between these three? What are the advantages/disadvantages of each?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT