An Index Consists of the Following Securities and Has an Index

question 8

Multiple Choice

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return?
$\begin{array}{cccc}\text { Stock } & \text { Shares Outstanding } & \text { Beginning Share Price}&\text{ Ending Share Price } \\\text { A } & 4,000 & \$ 21 & \$ 16 \\\text { L } & 1,000 & \$ 49 & \$ 61 \\\text { S } & 3,000 & \$ 37 & \$ 38\end{array}$

• A)-4.76%
• B)-2.05%
• C)3.09%
• D)5.17%
• E)7.48%

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Definitions:

Price Discrimination

The selling of a product to different buyers at different prices when the price differences are not justified by differences in cost.

Smoot-Hawley Act

A United States legislative act passed in 1930, which raised tariffs on thousands of imported goods, contributing to the severity of the Great Depression.

Import Restrictions

Government-imposed limits or duties on the quantity or value of goods that can be imported into a country.

Military Self-sufficiency

The capability of a nation to produce all necessary military supplies and services internally without relying on foreign assistance.