Essay
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?
Correct Answer:

Verified
a.
b.Value Line uses a geometric avera...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
b.Value Line uses a geometric avera...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q10: Studies of realized rates of return assume
Q12: The S&P 500 stock index is value-weighted.
Q14: With dollar-cost averaging, the investor purchases more
Q20: Movements in stock prices are often illustrated
Q21: If inflation occurs and the Dow Jones
Q23: According to studies of rates of return,yields
Q26: According to the Ibbotson Associates studies of
Q29: Studies of rates of return on large
Q31: Dollar cost averaging is<br>A)periodically buying a round
Q37: The rate of return on a stock