Final answer:
The stocks of Savoy, Hokie, Graham, and Expo would change in value in proportion to their weights in the index if the S&P 500 goes up. It is difficult to predict which stock would outperform the others if the stock market drops.
Step-by-step explanation:
If the S&P 500 goes up by %, the stocks of Savoy, Hokie, Graham, and Expo would change in value in proportion to their weights in the index. The S&P 500 is a market capitalization-weighted index, meaning that the stocks with higher market capitalizations have a greater impact on the index. For example, if Savoy has a weight of 10% in the index and the S&P 500 goes up by 1%, Savoy's stock price would be expected to increase by 10% of 1%, or 0.10%.
If the stock market drops by %, it is difficult to predict which one of these stocks would outperform the others. The performance of individual stocks during a market downturn can depend on a variety of factors such as the financial health of the company, industry trends, and investor sentiment. It is possible that one of the stocks may outperform the others, but it would require a thorough analysis of each company's fundamentals and market conditions.