Question

Which index is the narrowest measure of the market? StatusA A. Wilshire Index StatusB B. Value Line Index StatusC C. NYSE Composite Index StatusD D. Dow Jones Industrial Average

Answer 1

The Dow Jones Industrial Average is the narrowest measure of the market as it is comprised of only 30 large U.S. companies, providing a concentrated view compared to broader indices.

Step-by-step explanation:

The narrowest measure of the stock market among the options provided is D. the Dow Jones Industrial Average (DJIA). The DJIA is a price-weighted average that tracks 30 large publicly-owned companies trading on the New York Stock Exchange (NYSE).

In contrast, broader measures such as the S&P 500 Index track the stock prices of 500 large companies, and the Wilshire 5000 includes a far larger number, covering nearly the entire market of publicly-traded U.S. companies. Thus, with only 30 companies, the Dow Jones Industrial Average provides the most concentrated snapshot of market performance, making it the narrowest index listed.