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Suppose All Stocks in a Value-Weighted Index Increase by the Same

Question 56

Multiple Choice

Suppose all stocks in a value-weighted index increase by the same percentage one day. The stock that would affect the index the most would be the:


A) lowest priced stock.
B) highest priced stock.
C) smallest capitalization stock.
D) largest capitalization stock.
E) all of the stocks would change the index by the same amount.

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