A Benchmark Market Value Index Is Comprised of Three Stocks

question 60

Multiple Choice

A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the 1-day rate of return on the index?

• A) 5.78%
• B) 4.35%
• C) 6.16%
• D) 7.42%

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Definitions:

Divisionalized Structures

Refers to an organizational framework where operations are segregated based on divisions, each focusing on a specific product line or market sector.

Geographically Based

Pertaining to, or determined by, geographic locations or areas, often used in contexts relating to distribution or organization by place.

Client-Based

A focus on understanding and meeting the specific needs of clients or customers.

Global Companies

Businesses that operate and compete in more than one country, facing unique challenges such as cultural differences and international regulations.