The broadest measure of the activity
and movement of the overall stock market can be measured
by using which of the following indexes?
a) Lehman Aggregate Bond Index
b) Wilshire 5000
c) Dow Jones Industrial Average (DJIA)
d) S&P 500
correct answer is b).
The Wilshire 5000 is a value weighted index that consists
of more than 7,000 issues that trade on the NYSE, AMEX
and in the OTC market. It is considered to be the broadest
measure of the activity and movement of the overall
stock market. The DJIA consists of 30 industrial stocks
and is the most widely used index, but it is the narrowest
measure of the market. The S&P 500 measures the
largest issues that trade on the NYSE. The Lehman Aggregate
Bond Index tracks the performance of more than 5,000
different types of bonds.