Question

Utilizing the equal weighted series calculate the Index values for each day for the market below.                          &n

  1. Utilizing the equal weighted series calculate the Index values for each day for the market below.                                                                                            

Closing Prices

Number of Outstanding Shares (Millions)

A

B

C

A

B

C

1st Jan 2020

200

400

300

100

200

100

2nd Jan 2020

250

420

180

100

200

200

3rd Jan 2020

270

450

80

100

600

200

Homework Answers

Answer #1

Equally weighted series is calculated as taking the average of the percentage change in the price of each stock and increasing/decreasing the prior day's index value by that average percentage. Assuming that 1st Jan 2020 is the base date, the index value is taken to be 100. The index values are calculated as follows:

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