Question: Consider the data in the following table for a hypothetical two-stock version of the S&P 500. Compare the changes in the value of the portfolio

Consider the data in the following table for a hypothetical two-stock version of the S&P 500. Compare the changes in the value of the portfolio holding one share of each firm and the value- weighted index.

Initial Value of Outstanding Stock ($ million) Stock Initial Price Shares (millions) 20 Final Value of Outstanding Stock ($ million) $600 90 $690 Final Price $30 90 ABC XYZ Total $ 25 100 1 $500 100 $600

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