Assume that there are two stocks, DELL and P&G, in an Index.

The price of DELL is currently $100 per share, there are 50 shares of DELL stock outstanding, and the return on DELL stock over the next year will be 25%.

The price of P&G is currently $50 per share, there are 100 shares of P&G stock outstanding, and the return on P&G stock over the next year will be 10%.

20) Which stock, if any, carries more weight when calculating the rate of return using the MARKET VALUE-WEIGHTED INDEX method?

A. DELL

B. P&G

C. THEY CARRY THE SAME WEIGHT