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Why might someone consider the Standard and Poor's 500 (S&P 500) a better measure of stock performance than the Dow Jones Industrial Average?

A. The S&P 500 reports stock daily performance, and the Dow reports weekly.
B. The Dow reports on 30 stocks, and the S&P 500 tracks 500 stocks as its measure of overall stock performance.
C. The S&P 500 predicted the Great Crash of 1929, and the Dow predicted a rising bull market.
D. The Dow specializes in the stocks of a single industry, and the S&P 500 reports on the stocks of a variety of industries.

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Final answer:

The S&P 500 is a better measure of stock performance than the Dow Jones Industrial Average due to tracking more stocks, reporting daily performance, and including various industries' stocks.


Explanation:

The Standard & Poor's 500 (S&P 500) is considered a better measure of stock performance than the Dow Jones Industrial Average for several reasons:

  1. The S&P 500 tracks 500 stocks while the Dow tracks 30, providing a broader view of the market.
  2. The S&P 500 reports stock daily performance while the Dow reports weekly, offering more timely information.
  3. The S&P 500 includes various industries' stocks, unlike the Dow which focuses on a single industry's stocks.

Learn more about Stock Market Performance here:

https://brainly.com/question/5755831


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