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Figure 4.2 illustrated below shows the DJIA, the S&P 500, and the Nasdaq for a five-year period from early 2007 through early 2012. Note the

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Figure 4.2 illustrated below shows the DJIA, the S&P 500, and the Nasdaq for a five-year period from early 2007 through early 2012. Note the divergence in performance with the Nasdaq and DJIA finishing in positive territory and the S&P 500 in negative territory. Dow Jones industrial average DOW S&P500 NASDAQ Mar 02, 2012 + 40% + 20% 0% 20% 40% O Yahoo! Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 60% 15.0 Volume 10.0 5.0 0.0 FIGURE 4.2 A comparison of the Dow Jones industrial average, the S&P 500 index, and the Nasdaq index, early 2007-early 2012 What is the most likely reason that the divergence in performance with the Nasdaq is finishing in positive territory for a five-year period from early 2007 through early 2012? the Nasdaq Composite Index includes mostly technology stocks with higher growth rates. none of the answers is correct. the Nasdaq Composite Index measures the U.S. stock market in the broadest sense and the average of the market performs better. the Nasdaq Composite Index has "mid cap" stocks which performed better. the Nasdaq Composite Index has its potential problems and limitations because it consists of only 30 stocks but having small number of stocks help its performance

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