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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