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On May 20, 2020, the Dow Jones Industrial Average closed at 24575.90 and the S&P 500 closed at 2971.61. Microsoft closed at 185.66 (about 2.147%

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On May 20, 2020, the Dow Jones Industrial Average closed at 24575.90 and the S&P 500 closed at 2971.61. Microsoft closed at 185.66 (about 2.147% of S&P index) and Verizon closed at 54.26 (about 915% of S&P index). The DJIA divisor at that time was 0.147445684. i.) Suppose the next day the only Dow and S&P stock to change in price was Microsoft. MSFT changed down by 2.5% while the others remained unchanged. Show what would be the new values for the DJIA and the S&P 500. ii.) Now, suppose the next day only Verizon was to have a price change in the Dow and S&P. Verizon increased by 4% while the others remained unchanged. Show what would be the new DJIA value and S&P 500 level. iii.) Do the two stocks have the same effect on the two indexes based on the percentage impacts

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