
Ultimate access to all questions.
A manager gathers the following information about two non-dividend paying stocks that constitute a market-capitalization weighted index:
| Stock | Market Capitalization | Price per Share |
|---|---|---|
| 1 | $200 million | $30 |
| 2 | $100 million | $90 |
If there are no other securities in the index and the price of each stock increases by 10%, the index's return will most likely be: