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

question 56

Multiple Choice

Suppose all stocks in a value-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:

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