Considering the S&P 500 Index, if each company's stock price increased by 10%:
A. the weights in the index would remain the same.
B. the companies with fewer shares would gain more weight at the expense of the companies with greater shares.
C. the companies with the most shares outstanding would have even greater weight after the increase.
D. the weights in the index would change to reflect the percentage changes in the prices of the various stocks.
Answer: A
You might also like to view...
Technological progress means that we produce more output with the same amount of inputs
Indicate whether the statement is true or false
According to this Application, a bank will be required to develop an analytical model to determine what would happen if there was a ________ change in economic conditions, such as a large ________ in unemployment
A) positive; decrease B) negative; decrease C) positive; increase D) negative; increase