Stock Prices
Not what you're looking for?
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?
Purchase this Solution
Solution Summary
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.
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.