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Suppose there is a simple index of two stocks, stock A and stock B. Stock A opens on Monday with 5000 shares at $2.75 per share. Stock B opens on Monday with 3000 shares at $4.30 per share. Stock A opens on Tuesday at $3.10 per share, and stock B opens on Tuesday at $4.85 per share. Both stocks have the same number of shares that they opened with on Monday. What is the rate of change of this simple index over 1 day?

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The rate of change of this simple index over 1 day is 0.7%.

What is the rate of change?

The rate of change is the difference in the total value of the simple index.

Stock A opens on Monday with 5000 shares at $2.75 per share.

Stock B opens on Monday with 3000 shares at $4.30 per share.

Stock A opens on Tuesday at $3.10 per share, and stock B opens on Tuesday at $4.85 per share.

Total value of the simple index at monday is;

= (5000 x $2.75) + (3000 x $4.30)

= 13750 + 12900

= 26,650

The total value of the simple index at Tuesday is;

= (5000 x $3.10) + (3000 x $4.85)

= 15,500 + 14550

= 30,050

The rate of change of this simple index over 1 day is;

[tex]=\dfrac{30050-2650}{5000-3000}-1\\\\=\dfrac{3400}{2000}-1\\\\=1.7-1\\\\=0.7\\\\[/tex]

Hence, the rate of change of this simple index over 1 day is 0.7%.

To learn more about percentages, please check: brainly.com/question/25764815

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