the ch 25. Margin transaction involves borrowing part of a true b. false est part of the cost of the investment, eg, they 26. Short selling is practiced when an investor bonospan of are "short" on cash. a. true b. false 27. An aggregate market index can be used money managers. a true b. false adge the performance of professional 28. The Dow Jones Industrial Average is a value weighted average a. true b. false 28. The major U.S. stock indexes are highly correlated a. true b. false 29 The Standard & Poor's 500 index is an example of a value weighted index. a. true b. false 30. Which of the following is not a use of security market indicator series? To use as a benchmark of individual portfolio performance To develop an index portfolio To determine factors influencing aggregate security price movements To use in the measurement of systematic risk To use in the measurement of diversifiable risk s the following type of stock has the 31. In a price weighted average stock market indi e greatest influence The stock with the highest price The stock with the lowest price The stock with the highest market capitalization c. The stock with the lowest market capitalizati The stock with the highest P/E ratio 32. Whicche Univers of bonds is is is broader than stocks. it difficult to create and maintain a bond index 32. Which of the following are factors that mal The universe of bonds is broader than b. The un The universe of bonds is constantly che "sing due to sew issues, bond maturities, calls, and bond sinking funds. difficult to derive value, up-to-date pri is difficult to deri d. Choices a and All of the above