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    Stock Prices

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    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) Supposed 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?

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    The solution goes into a fair amount of detail pertaining to the question being asked. The explanation is very good and yet concise and to the point. It is also very easy to follow along. Overall, a very good answer to the question being asked.