Question

At a new index of 12 shares, the shares of HBL, Niposys and Brilliance have a weightage of $7\%$, $13\%$ and $1\%$ respectively. What is the increase in the price of the other shares, if the rise in these three is $9\%$, $10\%$ and $4\%$, when the index rises by $6\%$?

• A. 4%
• B. 3.4%
• C. 6%
• D. none of these

Answer 1

The correct option is C

6%

Lets say the value of the index = 100
HBL = 7
Niposys = 13
Brilliance = 1
Others = 100 - 21 = 79
Increased index value = 106
Increased individual values
HBL = 1.09 $\times$ 7=7.63
Niposys = 1.1 $\times$ 13 =14.3
Brilliance = 1.04 $\times$ 1 = 1.04
Total = 22.97

Others = 106 - 22.97 = 83.03

Increase $=\frac{83.03-79}{79}\times 100=5.1\%$ (approx)