Consider a value-weighted market index that includes the two companies shown in the table. What is the percentage change in the index from Day 1 to Day 2? $$\begin{array} { | c | c | c | c | c | }
\hline & \text { Company 1 } & \text { Company 1 } & \text { Company 2 } & \text { Company 2 } \
\hline \text { Day } & \text { Price } & \text { \# of Shares } & \text { Price } & \text { \# of Shares } \
\hline 1 & \$ 7.00 & 400 & \$ 10.00 & 1,500 \
\hline \mathbf { 2 } & \$ 7.24 & 400 & \$ 10.53 & 1,500 \
\hline
\end{array}$$
A)4.00%
B)4.25%
C)4.50%
D)4.75%
E)5.00%

Question

Consider a value-weighted market index that includes the two companies shown in the table. What is the percentage change in the index from Day 1 to Day 2? $$\begin{array} { | c | c | c | c | c | } 
\hline & \text { Company 1 } & \text { Company 1 } & \text { Company 2 } & \text { Company 2 } \
\hline \text { Day } & \text { Price } & \text { \# of Shares } & \text { Price } & \text { \# of Shares } \
\hline 1 & \$ 7.00 & 400 & \$ 10.00 & 1,500 \
\hline \mathbf { 2 } & \$ 7.24 & 400 & \$ 10.53 & 1,500 \
\hline
\end{array}$$
A)4.00%
B)4.25%
C)4.50%
D)4.75%
E)5.00%

Quizplus · Accepted Answer

The Answer of Consider a value-weighted market index that includes the two companies shown in the table. What is the percentage change in the index from Day 1 to Day 2? $$\begin{array} { | c | c | c | c | c | } 
\hline & \text { Company 1 } & \text { Company 1 } & \text { Company 2 } & \text { Company 2 } \
\hline \text { Day } & \text { Price } & \text { \# of Shares } & \text { Price } & \text { \# of Shares } \
\hline 1 & \$ 7.00 & 400 & \$ 10.00 & 1,500 \
\hline \mathbf { 2 } & \$ 7.24 & 400 & \$ 10.53 & 1,500 \
\hline
\end{array}$$
A)4.00%
B)4.25%
C)4.50%
D)4.75%
E)5.00%

Consider a Value-Weighted Market Index That Includes the Two Companies