e the data below to determine which of the statements is most accurate? a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z. b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z. c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
e the data below to determine which of the statements is most accurate? a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z. b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z. c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Use the data below to determine which of the statements is most accurate?
a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z.
b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z.
c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
Transcribed Image Text:Company
X
Y
Z
As of December 31,
Stock Price Shares Outstanding
$25
$50
$100
20,000
20,000
1,000
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