Question

A benchmark index has three stocks priced at $29, $52, and $62. The number of outstanding shares for each is 380,000 shares, 465,000 shares, and 613,000 shares, respectively. If the market value weighted index was 850 yesterday and the prices changed to $29, $49, and $65 today, what is the new index value?

Answer 1

index value = 855.15

Step-by-step explanation:

given data

stocks priced = $29

stocks priced = $52

stocks priced = $62

shares = 380,000

shares = 465,000

shares = 613,000

change price = $29

change price = $49

change price = $65

solution

we know

share (x) price (y) change price (z) (x) (y) (x) (z)

380,000 $29 $29 11020000 11020000

465,000 $52 $49 24180000 22785000

613,000 $62 $65 38006000 39845000

total 73206000 73650000

so new index value is

index value =
`(850*73650000)/(73206000)`

index value = 855.15