Question
A price-weighted index is constructed using the 4 stocks W, X, Y and Z. The stock prices and the number of shares outstanding are given
A price-weighted index is constructed using the 4 stocks W, X, Y and Z. The stock prices and the number of shares outstanding are given for days 1, 2 and 3.
Day 1
Day 1
Day 2
Day 2
Day 3
Day 3
Stock
Price
Shares
Price
Shares
Price
Shares
W
$118.00
10000
$64.50
20000
$71.00
20000
X
$67.50
16000
$78.50
16000
$44.00
32000
Y
$31.00
20000
$34.00
20000
$33.00
20000
Z
$94.00
12000
$97.50
12000
$95.00
12000
What is the price weighted index value on Day 3? (Round your answers to 3 decimal places in your calculations).
A.114.634
B.98.538
C.66.725
D.87.515
E.152.374
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
