Quiz Ch 02 – T/F S&P 500 Average Return as Market Indicator

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Each stock's annual return combines dividend and capital gains yields. These returns are computed for all S&P 500 stocks. A simple average of these returns, giving equal weight to each company, is termed the 'return on the S&P Index.' This average frequently serves as a marker for the 'return on the market'.

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