Question

An index of 12 shares contains, among others, the shares of Reliance, HLL, and Infosys with weightage of 7%, 13%, and 15% respectively. What is the increase in the prices of other shares, if these three rises by 9%, 10%, and 4% respectively, while the index rises by 6%?

• A. 5.34%
• B. 4.91%
• C. 4.58%
• D. Cannot be determined

Answer 1

The correct option is A 5.34%

Let the value of Index = 100
Value of Reliance share = 7
Value of HLL = 13
Value of Infosys = 15
Value of remaining = 65
New value of Reliance = 7.63
New value of FILL = 14.3
New value of Infosys = 15.60
New value of remaining = 68.47
Hence, required percentage $=\frac{3.47}{65}\times 100=5.34\%$