Use Figure 2 to answer this question. Suppose that you build a price-weighted index based on the firms above. Which of the following is true in regards to the composition of the index?

Question 1 options:

	a. Mango Chemicals' stock performance will have the greatest effect on the index's performance.
	b. Ultra Retirement Financials' stock performance will have the greatest effect on the index's performance.
	c. Lavarra Makeup Inc.'s stock performance will have the greatest effect on the index's performance.
	d. Each business will have the same impact on the index's performance.

Firm Mango Chemicals Ultra Retirement Financials Lavarra Makeup Inc. FIGURE 2 Market Cap $5,000,000 $18,000,000 $88,000,000 Shares Outstanding 1,000 20,000 4,000,000