Exhibit 56
Use the Information Below for the Following Problem(S)

question 13

Multiple Choice

Exhibit 5.6
Use the Information Below for the Following Problem(S)
                                                                                                           Price
$$\begin{array} { c c c c } \text { Stack } & \text { Number of Shares } & \text { Day T } & \text { D.y T + 1 } \\\hline Q & 5,000,000 & 80 & 95 \\R & 8,000,000 & 60 & 55 \\\text { S } & 15,000,000 & 20 & 24\end{array}$$
-Refer to Exhibit 5.6.If an equal-weighted index is constructed on Day T with $10,000 in each stock,what is the percentage change in wealth for this index on Day T + 1? Assume a base index value of 100 on Day T.

• A) 8.65%
• B) 10.14%
• C) 15.69%
• D) 30.42%
• E) 47.08%

Comprehend how a market system manages business risks.

Grasp the concepts of risk management, including the purpose of insurance.

Differentiate between market and command economies in terms of risk management and economic performance.

Recognize the importance of innovation and consumer sovereignty in the market economy.

---

Definitions:

Recession

A decline in real GDP for two consecutive quarters.

Lowering Tax Rates

The act of reducing the percentage at which income or corporate profits are taxed, which can affect economic behaviors and government revenues.

Supply-siders

Economists who believe reducing barriers for people to produce (supply) goods and services, like lower taxes, will stimulate economic growth.

Curing Recessions

Efforts and policies aimed at stimulating economic recovery and ending periods of economic decline.