There are three stocks in a price-weighted index: A.....$100 B.....20 C.....60 a. What is the average value

Question:

There are three in a price-weighted index:
A.....$100
B.....20
C.....60
a. What is the average value for the index?
b. Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index?
c. Explain why in part b the average changed with two moving up and down by the same percentage amount. Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...