Consider the following information: State   Probability   Stock A   Stock B   Stock C  Boom     0.32         0.17        -0.11        -0.06  Bust       0.68         -0.03        -0.01        0.23 What is the expected return of a portfolio that has invested $16,157 in Stock A, $19,654 in Stock B, and   $9,659 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234)

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Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.