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An index consists of 3 stocks: A, B and C. At date 0, the prices per...

  1. An index consists of 3 stocks: A, B and C. At date 0, the prices per share for A, B and C are $13, $60, and $15, respectively. At date 0, the number of shares outstanding for A, B, and C are 100, 120, and 3000 respectively. At date 1, the prices per share for A, B and C are $12, $22, and $12, respectively. At date 1, the number of shares outstanding for A, B, and C are 100, 480, and 3000 respectively.

    A value weighted index consists of these 3 stocks has a value equal to 900 at time 0. What is the value of that index at time 1?

    For your convenience, the prices and quantity of shares outstanding for the 3 stocks are provided in the following table:

    Stock P0 (price at time 0) P1(price at time 1) Q0 (number of shares outstanding at time 0) Q1 (number of shares outstanding at time 1)
    A 13 12 100 100
    B 60 22 120 480
    C 15 12 3000 3000

    803.44

    1120.3

    989.7

    1098.50
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