The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1

-If a company's market cap is $5,000,000 and the value of all stocks in the index is $100,000,000, then that company has a weight of _____ of the index.

Question

The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1
 
-​If a company's market cap is $5,000,000 and the value of all stocks in the index is $100,000,000, then that company has a weight of _____ of the index.

Quizplus · Accepted Answer

The company's weight in the index is calculated by dividing its market cap by the total value of all stocks in the index: ($5,000,000 / $100,000,000) * 100 = 5 percent.

The Figure Given Below Shows the Demand Curves [D1 and D2]

The Figure Given Below Shows the Demand Curves [D₁ and D₂]