What is the percentage increase in the market

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Reference no: EM13948995

The market consists of the following stocks. Their prices and number of shares are as follows:

  Stock          Price         Number of Shares Outstanding

    A               $10                 100,000

    B                 20                    10,000

    C                30                    200,000

    D                40                    50,000

a. The price of Stock C doubles to $60. What is the percentage increase in the market if a S&P 500 type of measure of the market is used?

b. Repeat question (a) but use a Value Line type of measure of the market (i.e., a geometric average) to determine the percentage increase.

c. Suppose the price of stock B doubled instead of stock C. How would the market have fared using the aggregate measures employed in (a) and (b)? Why are your answers different?

Reference no: EM13948995

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