Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A market value-weighted index has three stocks in it, priced at 20, 32, and 74 per share, and each firm has 192, 227 and 488

A market value-weighted index has three stocks in it, priced at 20, 32, and 74 per share, and each firm has 192, 227 and 488 thousand shares outstanding, respectively. The value of the index today is 961. Over the course of a month, the market does its random walk-y thing, and the prices of the three stocks change do 88, 40, 63, respectively. What is the new value of the index?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions