Use the data below to determine which of the statements is TRUE()
A. A 100% increase in the stock price of Company A will have a smaller impact on the price-weighted index than a 100% increase in the stock price of Company C.
B. For a given percentage change in the stock price, Company A will have a greater impact on the market-value weighted index than Companies B or C.
C. For a given percentage change in the stock price, Company B will have less of an impact on the market-value weighted index as Company C.
参考答案:A
解析:
A 100% change in the stock price of Company C will have a larger impact than a 100% change in either stocks A or B on the price-weighted index. A price-weighted index adds together the market price of each stock in the index and then divides this total by the number of stocks in the index. The price-weighted index assumes you purchase one share of each stock represented in the index. The price-weighted index is influenced most by given percentage changes in the higher priced stocks.