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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. 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?
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If the quantity of bonds demanded exceeds the quantity of bonds supplied, bond prices: When the price of a bond is below the face value, the yield to maturity:
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.47 a share. The following dividends will be $0.52, $0.67, and $0.97 a share annually for the following three years, respec..
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