Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
A market value weighted index has three stocks in it, priced at 91.6, 96.4, and 72.9 per share, and each firm has 430, 447 and
A market value weighted index has three stocks in it, priced at 91.6, 96.4, and 72.9 per share, and each firm has 430, 447 and 254 thousand shares outstanding, respectively. The value of the index today is 622.8. Over the course of a month, the market does its random walk-y thing, and the prices of the three stocks change do 89.4, 74.5, 76.1, respectively. What is the new value of the index? Enter answer accurate to two decimal places
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668f921e17ae5_085668f921d637b8.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started