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Consider a market comprised of shares A, B and C. Details of these shares are presented in the following table: share no of shares on
Consider a market comprised of shares A, B and C. Details of these shares are presented in the following table:
share | no of shares on issue | $ end of Dec 2017 | $ end of Dec 2018 |
a | 10,000 | $2 | $4 |
b | 3,000 | $16 | $12.5 |
c | 2,000 | $7.5 | $5.5 |
Suppose an investor was interested in using an index approach to determine aggregate movements in the market. Form two indices, using (1) value and (2) equal-weighting schemes and calculate the return for each scheme over the 2018 year.
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