Question: 1) Generally speaking, bonds have relatively __ return and __ risk compared to stocks. A. higher; lower B. lower; higher C. lower; lower D. higher;

1)

Generally speaking, bonds have relatively __ return and __ risk compared to stocks.

A.

higher; lower
B.

lower; higher
C.

lower; lower
D.

higher; lower

2)

S&P 500 is a(an) ______ index.

A.

market value-weighted
B.

price-weighted
C.

equally weighted

3)

The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in each S&P 500 company __________.

A.

in proportion to the price weight of the stock in the S&P500
B.

by purchasing an equal number of shares of each stock in the S&P 500
C.

in proportion to the market value weight of the firm's equity in the S&P50

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