Question

Three stocks have share prices of $17, $65, and $35 with total market values of $440 million, $390 million, and $190 million, respectively. if you were to construct a price-weighted index of the three stocks, what would be the index value?

Answer 1

A price-weighted index is simply the sum of the members' stock prices divided by the number of members.

in this case (17+65+35)/3 = price-weighted index