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10) Consider a stock index consisting of the following three stocks: Stock Price at the beginning of the year Number of shares outstanding X $50
10) Consider a stock index consisting of the following three stocks: Stock Price at the beginning of the year Number of shares outstanding X $50 100 Y $40 125 Z $25 200 You don't have end-of-year price information. How does the equal-weighted index return during the year (from start to end) compare to the price-weighted index return? A) The equal-weighted return equals the price-weighted return B) The equal-weighted return is greater than the price-weighted return C) The equal-weighted return is less than the price-weighted return D) Cannot determine without more information 10) Consider a stock index consisting of the following three stocks: Stock Price at the beginning of the year Number of shares outstanding X $50 100 Y $40 125 Z $25 200 You don't have end-of-year price information. How does the equal-weighted index return during the year (from start to end) compare to the price-weighted index return? A) The equal-weighted return equals the price-weighted return B) The equal-weighted return is greater than the price-weighted return C) The equal-weighted return is less than the price-weighted return D) Cannot determine without more information
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