Question

Zale wants to determine how his stock portfolio is doing compared to the overall market. What should he do? A. compare his stock portfolio’s performance to his friend’s portfolio B. compare his stock portfolio’s performance to that of another company’s stock price C. compare his stock portfolio’s performance to a benchmarking index such as the S&P 500 D. compare his stock portfolio’s performance to a hedge fund E. compare his stock portfolio’s performance to the spot market

Answer 1

Zale would want to C. compare his stock portfolio’s performance to a benchmarking index such as the S&P 500. The S&P 500 is also known as the S&P.  The S&P is the American stock market index that is based on 500 large companies.  These 500 large companies are often called the fortune 500, as they are the top 500 grossing companies in the United States. Comparing your stock to these companies, would allow you to know where you stand and how your investments are doing.

Answer 2

Compare to index like SP500