8. BIGCO Corporation is one of the major components of the INDX stock index, and large numbers of

shares of BIGCO are included in index funds tracking INDX (these are funds set up so that investors

can easily invest in the entire stock market at once, rather than in individual stocks). A major crisis

hits the market, negatively impacting the growth prospects of many firms listed on INDX. BIGCO,

however, was well insured against this possibility, and is expected to easily weather the crisis with no

impact to its projected dividend growth rate. Despite this, when the crisis hits, investors holding index

funds tracking INDX want to sell, since the overall market is negatively affected. This means that

BIGCO stocks will be sold too, as a part of the index funds. The price of BIGCO stock falls. Explain

what you think will happen to BIGCO's stock price over time.