Assume that Coca-Cola and Pepsico, both of which are in the DJIA and in the S&P 500,

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Assume that Coca-Cola and Pepsico, both of which are in the DJIA and in the S&P 500, have approximately equivalent market values (price multiplied by the number of shares outstanding) but very different market prices (which in fact is the case).

Would a 5 percent move in each stock have about the same effect on the S&P S00 Index? Why or why not?

Related Book For answer-question

Molecular Cell Biology

ISBN: 978-1429234139

7th edition

Authors: Harvey Lodish, Arnold Berk, Chris A. Kaiser, Monty Krieger, Anthony Bretscher, Hidde Ploegh, Angelika Amon, Matthew P. Scott

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Posted Date: Apr 13, 2023 01:57 AM

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Assume that Coca-Cola and Pepsico, both of which are in the DJIA and in the S&P 500,

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No a 5 percent move in each stock would not have the same effect on the SP 500 index The SP 500 inde... View the full answer

Molecular Cell Biology

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