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Stock X is trading at $50 today, and has 20 shares outstanding. Stock Y is trading at $200 today, and has 5 shares outstanding. Suppose
- Stock X is trading at $50 today, and has 20 shares outstanding.
- Stock Y is trading at $200 today, and has 5 shares outstanding.
Suppose Stock X goes up by 2% and Stock Y goes down by 3% from their current prices.
- If the market is price-weighted, how much will it go up (or down)? This should be measured in percentages.
- If the market is value-weighted, how much will it go up (or down)? Again this should be measured in percentages.
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
