Which of the Following Statements About a Stock Index Is

Multiple Choice

Which of the following statements about a stock index is INCORRECT?

A) A stock index is a hypothetical portfolio formed according to some criteria or rules.
B) A stock index can be sold short.
C) A stock index gives a quick sense of the performances of the market or a sector of the economy.
D) A stock index provides a benchmark against which performance of fund managers are measured.
E) A stock index can be used for creation of derivative products.