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There is a value-weighted index made up of two companies, A and B. Company A has a stock price of $25 per share, and there
There is a value-weighted index made up of two companies, A and B. Company A has a stock price of $25 per share, and there are 10,000 shares outstanding. Company B has a stock price of $100 per share and has 1,000 shares outstanding. What is the percentage change in the index from a 10% increase in the share price of company A? What is the percentage change in the index from a 10% increase in the share price of company B?
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