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- By their market capitalization
- By their stock prices
- They are equally weighted
- At the discretion of a committee
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- They underlie numerous investment products
- Their stock selection is governed entirely by quantitative rules
- They track large-cap U.S. stocks
- Both A and C
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- The Dow has generally outperformed the S&P 500
- The S&P 500 has generally outperformed The Dow
- Their performance has been nearly identical
- Their performance has been highly correlated, but one may outperform the other depending on market conditions
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- Stocks are added and deleted only during scheduled annual reviews
- Stocks are removed immediately when they fall below a pre-defined market capitalization threshold
- Stocks may be added or deleted at any time, and these changes are generally made in response to corporate mergers and acquisitions
- Stocks are almost never replaced, in order to preserve the index’s continuity
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- Their level of diversification
- Their long-term performance
- The quality of their component stocks
- Their reliability in measuring the market
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