questions 1: The S&P 500 and the Dow Jones Industrial Average indices are proxies for the broader US stock market.You notice one day that the S&P 500 closed UP by 0.20%, while the DJIA closed DOWN by 0.20%.

Explain how it is possible for one proxy(S&P 500) to have a positive return while the other (DJIA) has a negative returnon any given day.Include in your explanation some of the names that could have caused this discrepancy. Which return(S&P 500 or DJIA) is more indicative of the 'true market return'?

To facilitate your analysis, please refer to the link below that shows the components of the S&P 500 and DJIA.Hint: Recall the S&P 500 contains the largest 500 US companies where the weight of each name is proportional to its market value.The DJIA is a price-weighted index comprised of select 30 names representing certain industries.(20 points)

question2 : A work colleague was bragging that the actively managed mutual fund he selected among your employ

er's 401(k) electives outperformed the S&P 500 over the past 3 years. The colleague (who did not take FINC 561) claims that it's a great fund, that the manager is a genius and is urging you to invest in that fund as well.

However, you believe that markets are efficient. Do you take your colleague's advice?Explain your rationale by applying concepts of market efficiency learned so far in the course. Include whether the mutual fund's performance violates or disproves efficient markets and why or why not? (20 points)

Mod 1 Homework S&P500 & Dow Jones Index Data Q ~ Search Sheet Home Insert Draw Page Layout Formulas Data Review View + Share X Cut Calibri (Body) * 11 A- A Copy Wrap Text General 2 AutoSum Paste Fill Format BI UTY M. A. Merge & Center $ ~ % 2 80 .0 Conditional Format Cell Insert Delete Format Formatting as Table Styles Clear Sort & Filter N30 X V fx D E F G H M N 0 P 42 40 Mcdonald's Corp. 0.52% Q $133 43 41 Thermo Fisher Scientific, Inc. 0.51% $130 14 1 42 Medtronic Plc 0.50% $128 45 | 43 PayPal Holdings, Inc. 46 44 0.50% $127 AbbVie, Inc. 0.47% $121 47 45 Philip Morris International, Inc. 0.46% 48 46 NextEra Energy, Inc. $117 0.45% $116 49 . 47 American Tower Corp. 50 1.449 $112 8 T-Mobile US, Inc. 49 Wells Fargo & Co. 1.44 $112 0.43% $110 52 53 50 Danaher Corp. 0.42% 51 Accenture Ple $108 D.42% $107 54 52 Lockheed Martin Corp. 0.42% $107 Charter Communications, Inc. 0.41% $104 Texas Instruments Incorporated 0.41% $104 57 55 Broadcom, Inc. 0.40% 58 $103 56 International Business Machines Corp. 0.40% 59 $103 60 57 Union Pacific Corp 0.38% $98 Linde Plc 0.38% 598 Gilead Sciences, Inc. 0.38% $96 62 60 Honeywell International, Inc. 0.37% 63 61 QUALCOMM, Inc. $94 0.34%% $88 64 |62 United Parcel Service, Inc 65 63 0.34%% $88 66 Starbucks Corp 64 Citigroup, Inc. 0.34% $86 0.33%% 67 65 3MCo. $85 0.33%% $83 68 66 CVS Health Corp. 0.32% $82 69 67 Mondelez International, Inc. 70 68 0.30% $76 Fidelity National Information Services, Inc. 0.30% 71 69 The Boeing Co $76 0.30%% 72 70 Altria Group, Inc. $76 0.29% 73 71 Cigna Corp. $75 0.28% $73 74 | 72 Becton, Dickinson & Co. 75 0.28% $71 BlackRock, Inc. 0.28% 76 $71 Lowe's Cos., Inc. 0.27% 77 75 Vertex Pharmaceuticals, Inc. $70 0.27%% $69 78 76 Anthem, Inc. 0.27%% $69 19 77 Crown Castle International Corp. 80 0.26% $67 81 8 CME Group, Inc 0.26% $67 79 Intuit, Inc. D.26% $67 32 80 Advanced Micro Devices, Inc. 0.26% 3 | 81 5&P Global, Inc. $67 1.26 $66 84 82 American Express Co 0.26% $66 S&P & DJIA + Select destination and press ENTER or choose Paste - + 100%