Solved

The Market Consists of the Following Stocks

Question 24

Essay

The market consists of the following stocks.Their prices and number of shares are as follows:
The market consists of the following stocks.Their prices and number of shares are as follows:    a.If the price of Stock C doubles to $60,what is the percentage increase in the market if an S&P 500 type of measure of the market is used? b.Repeat question (a)but use a Value Line type of measure of the market (i.e.,a geometric average)to determine the percentage increase. c.Suppose the price of stock B doubled instead of stock C.How would the market have fared using the aggregate measures employed in (a)and (b)? Why are your answers different? a.If the price of Stock C doubles to $60,what is the percentage increase in the market if an S&P 500 type of measure of the market is used?
b.Repeat question (a)but use a Value Line type of measure of the market (i.e.,a geometric average)to determine the percentage increase.
c.Suppose the price of stock B doubled instead of stock C.How would the market have fared using the aggregate measures employed in (a)and (b)? Why are your answers different?

Correct Answer:

verifed

Verified

a. blured image
b.Value Line uses a geometric avera...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions