SIE Understanding Products and Their Risks Question 97: Answer and Explanation

Question: 97

Which of the following indexes tracks the return of 98 percent of publicly-traded U.S. stocks?

• A. Dow Jones Industrial Average (DJIA)
• B. S&P 500
• C. Russell 3000
• D. NASDAQ 100

Correct Answer: C

Explanation:

C: Choice C tracks publicly-traded stocks of 3,000 of the largest American companies, which is about 98% of all of them. Choice A is incorrect because it only tracks thirty companies' stocks. Choice B is incorrect because it only tracks about 500 stocks, even though it is considered a measure of the broad market. Choice D is incorrect because it tracks stocks of about 100 companies trading on the NASDAQ