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

question 25

Multiple Choice

Consider the following three stocks: $\begin{array}{lll}\underline{\text { Stock }} &\underline{ \text { Price } }&\underline{ \text { Number of shares outstandins} } \\\text { Stock A } & \$ 40 & 200 \\\text { Stock B } & \$ 70 & 500 \\\text { Stock C } & \$ 10 & 600\end{array}$

-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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