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8. You have decided to create stock market indexes using three representative stocks. At the end of day 1, stock X has a price of
8. You have decided to create stock market indexes using three representative stocks. At the end of day 1, stock X has a price of $20 per share and 20 million shares outstanding, stock Y has a price of $25 per share and 50 million shares outstanding, and stock Z has a price of $35 per share and 40 million shares outstanding. You calculate a price-weighted index and a market capitalization-weighted index. You have decided that the beginning value of each index at the end of day 1 will be 100. What is the value of each index at the end of day 2 if stock X's price is $23 per share, stock Y's price is $22 per share, and stock Z's price is $36 per share? 8. You have decided to create stock market indexes using three representative stocks. At the end of day 1, stock X has a price of $20 per share and 20 million shares outstanding, stock Y has a price of $25 per share and 50 million shares outstanding, and stock Z has a price of $35 per share and 40 million shares outstanding. You calculate a price-weighted index and a market capitalization-weighted index. You have decided that the beginning value of each index at the end of day 1 will be 100. What is the value of each index at the end of day 2 if stock X's price is $23 per share, stock Y's price is $22 per share, and stock Z's price is $36 per share
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