Which French index represents the 40 most significant stocks among the 100 largest by market capitalization on Euronext Paris?

• A. FTSE 100
• B. DAX
• C. CAC 40
• D. Nikkei 225

Answer: (C)

This item is about identifying the country-specific benchmark that reflects the largest listed stocks on a given exchange. The French index that fits this description is the CAC 40, which is the benchmark composed of the 40 largest and most liquid French stocks listed on Euronext Paris. It represents the performance of France’s prominent listed companies and serves as a barometer for the French equity market. By contrast, the FTSE 100 measures large UK companies on the London Stock Exchange, the DAX tracks major German firms on the Frankfurt Exchange, and the Nikkei 225 covers large Japanese companies on the Tokyo Stock Exchange.