Chapter 05 - Slides 48-60 - Market Averages and Indexes, Volatility Re-examined

Finally, we discuss the major stock market averages and indexes that we use to measure the performance of various parts of the stock markets. As we saw in Chapter 4 on mutual funds, market indexes have become very important because of the increasing number of index funds and ETFs (exchange-traded funds), many of which make their way into employer-sponsored retirement plans such as 401(k) and 403(b) plans.

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