1 answer

14. In practice which market index would best be used as a proxy for the market...

Question:

14. In practice which market index would best be used as a proxy for the market portfolio in the​ CAPM? A. Wilshire 5000 B. Dow Jones Industrial Average C. U.S. Treasury Bill D. S&P 500


Answers

The answer is (D). S&P 500

Market proxy can serve as the basis for an index fund or for statistical studies. The S&P 500 Index is the best used market proxy for the market portfolio in the CAPM

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