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7) An index has three stocks priced at $10, $20, and $50 yesterday. The number of outstanding shares for each is 300 shares, 100 shares,

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7) An index has three stocks priced at $10, $20, and $50 yesterday. The number of outstanding shares for each is 300 shares, 100 shares, and 100 shares, respectively The value weighted index was 100 yesterday. When the prices change to $12, $24, and $45 today, the new index is 101.25. (10points) a. True b. False 8) Stop-buy orders often accompany a short sale and are used to limit potential losses from the position. (10points) a. True b. False

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