-If Silver and Platinum Are the Only Two Stocks in the Index

question 88

Multiple Choice

-If Silver and Platinum are the only two stocks in the index, what is the price-weighted index return?

• A) 5.89%
• B) 4.48%
• C) 5.95%
• D) 4.04%
• E) 5.36%

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Definitions:

Deflation

A decrease in the general price level of goods and services, often indicating a contraction in the amount of money or credit available in the economy.

CPI

The Consumer Price Index tracks the weighted average price changes of a basket containing consumer goods and services, such as food, healthcare, and transportation, to gauge average price movements.

Prices Increase

A situation where the general level of prices for goods and services rises, often measured by the inflation rate.

CPI

A calculation tool, the Consumer Price Index, measures the mean prices of a selected basket of consumer services and goods including food, transportation, and medical services via their weighted average.