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

question 13

Multiple Choice

Consider the following three stocks: $$\begin{array} { l c c } \text { Stock } & \text { Price } & \text { Number of shares outstanding } \\\hline \text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$$
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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Risk-taking behaviour that results in new opportunities.