In a price-weighted index, a(n) _____ stock price has less influence than a stock _____ .
A) low; with a high price
B) low; with a lower price
C) increasing; with a decreasing price
D) none of the above

Question

Quizplus · Accepted Answer

In a price-weighted index, stocks with higher prices have more influence on the index's value than those with lower prices. This means a stock with a high price affects the index more than a stock with a low price.

In a Price-Weighted Index, A(n) _____ Stock Price Has Less