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The S&P 500 has a broader index than the DJIA: True/ False

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Final answer:

The S&P 500 has a broader index than the DJIA because it includes a larger number of companies in its index.

Step-by-step explanation:

True. The S&P 500 has a broader index than the DJIA. The S&P 500 index is based on the weighted average market capitalization of 500 large U.S. firms, representing the economy as a whole. On the other hand, the DJIA is a price-weighted average of 30 industrial stocks on the New York Stock Exchange. So, the S&P 500 includes a larger number of companies in its index, making it broader than the DJIA.

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