Answers to Text Discussion Questions
Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index? c. Explain why in part b the average changed with two stocks moving up and down by the same percentage amount. 3-11. a. b. c. The price-weighted average gives a higher weighting to high priced ... ................
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