Question
The Greenland Stock market consists of two companies. One is a small-cap copmany with 100 shares outstanding and a market price of $500 per
The Greenland Stock market consists of two companies. One is a small-cap copmany with 100 shares outstanding and a market price of $500 per share. The other one is a large-cap company with 10 million shares outstanding at a market price of $5 per share. If the price of the large-cap company increases to $9 per share, and the price of the small-cap stock does not change: The value-weighted stock index will show a significant increase The price-weighted stock index will show a significant increase Both the price-weighted and the value-weighted index will increase the same amount There will be no change in either index.
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Statistics For Business And Economics
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
11th Edition
978-0324783254, 324783256, 978-0324783247, 324783248, 978-0538481649
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