Question

You should calculate a simple index of three stocks – Raysut Cement Stock, Oman Oil Stock, Bank Dhofar Stock. Days Raysut Cement Oman Oil Bank Dhofar No. of Stock Opening Price No. of Stock Opening Price No. of Stock Opening Price Monday 15000 Omr 10 10000 Omr 15 5000 Omr 20 Tuesday 15000 Omr 10.50 10000 Omr 15.75 5000 Omr 21 Wednesday 15000 Omr 10.25 10000 Omr 15.50 5000 Omr 20.50 What is the rate of change of this simple?

Answer 1

To calculate the rate of change of the simple index for the three stocks, we need to find the percentage change in the index value between two points in time. Let's calculate the rate of change for each stock and then calculate the overall rate of change for the index.

Step-by-step explanation:

To calculate the rate of change of the simple index for the three stocks, we need to find the percentage change in the index value between two points in time. The formula for calculating percentage change is:

Percentage Change = ((Final Value - Initial Value) / Initial Value) * 100

Let's calculate the rate of change for each stock and then calculate the overall rate of change for the index:

1. For Raysut Cement Stock: Percentage Change = ((10.25 - 10) / 10) * 100 = 2.5%
2. For Oman Oil Stock: Percentage Change = ((15.5 - 15.75) / 15.75) * 100 = -1.59%
3. For Bank Dhofar Stock: Percentage Change = ((20.50 - 20) / 20) * 100 = 2.5%

Now, we can calculate the overall rate of change for the index by taking the average of the percentage changes:

Overall Rate of Change = (2.5% + (-1.59%) + 2.5%) / 3 = 1.14%