The DJIA reached a level of 11,722.98 in January 2000, and the S&P 500 reached a level of, 527.46 in March 2000. Prior to that, on one particular day, the DJIA was at 10,872.48 and the S&P 500 was at 1,265.32.
a. What percentage gain was necessary in each index for it to advance to the two levels indicated above, given the two lower prices stated?
b. If the S&P index declined 9 percent over the following year from 1,265.32, what would its new level be?