If I wanna evaluate performance of a company’s stock, I will look at their individual stock value But if I want to see the performance of the particular industry as a whole, I will look at index funds?
My question is, will we look at index funds to analyse the perfomance of the industry? And if not, then how do we analyse the perfomance of the whole industry?
It depends what information is given in the exam. You could use index funds, or you could look at changes the average share price for the particular sector.