Consider a Value-Weighted Market Index That Includes the Two Companies

question 23

Multiple Choice

Consider a value-weighted market index that includes the two companies shown in the table. What is the percentage change in the index from Day 1 to Day 2? $$\begin{array} { | c | c | c | c | c | } \hline & \text { Company 1 } & \text { Company 1 } & \text { Company 2 } & \text { Company 2 } \\\hline \text { Day } & \text { Price } & \text { \# of Shares } & \text { Price } & \text { \# of Shares } \\\hline 1 & \$ 7.00 & 400 & \$ 10.00 & 1,500 \\\hline \mathbf { 2 } & \$ 7.24 & 400 & \$ 10.53 & 1,500 \\\hline\end{array}$$

• A)4.00%
• B)4.25%
• C)4.50%
• D)4.75%
• E)5.00%

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Definitions:

Chromatid

Each of the two strands of a replicated chromosome, which are joined at the centromere before cell division.

Centromere

The area on a chromosome where spindle microtubules connect through the kinetochore during the process of cell division.

Chromatin

The complex of DNA and protein found in the nucleus of eukaryotic cells, playing a role in gene regulation and expression.

Homeostasis

The regulation of the internal environment within the body to maintain stable, constant conditions for living functions.