Consider the Following Three Stocks The Value-Weighted Index Constructed with the Three Stocks Using a \text

question 42

Multiple Choice

Consider the following three stocks: $\begin{array}{lll}\text { Stock } & \text { Price Number of shares}& \text { outstanding } \\\text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$
The value-weighted index constructed with the three stocks using a divisor of 100 is

• A) 1.2.
• B) 1200.
• C) 490.
• D) 4900.
• E) 49.

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