Question

"A benchmark index has three stocks priced at $32, $35, and $70. The number of outstanding shares for each is 350000 shares, 405000 shares, and 553000 shares, respectively. Suppose the price of these three stocks changed to $30, $40, and $62 and number of outstanding shares did not change, what is the equal-weighted index return?"

		-3.65%
		0.72%
		-1.13%
		-4.45%

question 18

Answer 1

Option C -1.13%

Equally weighted Index Return = (Sum of return of each stock in index) / Number of stocks in index