Suppose All Stocks in a Price-Weighted Index Increase by the Same

question 107

Multiple Choice

Suppose all stocks in a price-weighted index increase by the same percentage one day. The stock that would affect the index the most would be the:

• A) lowest priced stock.
• B) highest priced stock.
• C) smallest capitalization stock.
• D) largest capitalization stock.
• E) All of the stocks would change the index by the same amount.

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Definitions:

Current Emotion

The specific emotional state that an individual is experiencing at a particular moment in time.

Affects Balance

Affects Balance relates to the equilibrium between positive and negative emotions experienced by an individual, influencing their overall mood and well-being.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that intelligence is not a single general ability but a combination of multiple distinct abilities.

Interpersonal Intelligence

A term derived from Howard Gardner's theory of multiple intelligences, referring to the ability to understand and interact effectively with others, including the skills of social awareness, empathy, and effective communication.