4. The market consists of the following stocks. Their prices andnumber of shares are as follows:
Stock Price Number ofShares 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 percentageincrease in the market if a S&P 500 type of measure of themarket is used?
b. Repeat question (a) but use a Value Line type of measure ofthe market (i.e., a geometric average) to determine the percentageincrease.
c. Suppose the price of stock B doubled instead of stock C. Howwould the market have fared using the aggregate measures employedin (a) and (b)? Why are your answers different?