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Uses of security-market indexes – Please write a paper about the uses of security-market indexes. How...

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Finance

Uses of security-market indexes – Please write a paper aboutthe uses of security-market indexes. How are they constructed anddifferentiated? How are they used as benchmarks? Why shouldinvestors examine numerous security-market indexes to evaluate theperformance of their investments? Integrate Leviticus 19:22-25 andEcclesiastes 11:1-6 into the paper.
Requirements: 500 words minimum

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Securitymarket indexes There are many uses of securitymarket indexes One is to use it as a benchmark to evaluate the performance of professional money managers Another use of securitymarket indexes is to create and monitor an index refund You can also use securitymarket indexes to measure market rates of return in economic studies or for predicting future market movements by technicians A security market index is a means to measure the growth of value of a set of securities Sometimes an index is just an arithmetic average but usually it is a ratio where the current index value is divided by the index value of some base yearthe base market value Although this value is usually measured in dollars the dollars cancel out in the ratio so such an index is a pure number that is a multiple of the base figure Some famous indexes are the Dow Jones Industrial Index DJIA which is a group of 30 stocks of the largest American corporations the Standard Poors Composite 500 Index SP 500 which comprises about 500 stocks and the NASDAQ Composite Index started on February 5 1971 with a base value of 100 comprises most of the stocks on the NASDAQ    See Answer
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