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Consider a market value-weighted index consisting of Apple (AAPL) and Facebook (FB) stocks. Their price and market value information are provided below: AAPL initial price

Consider a market value-weighted index consisting of Apple (AAPL) and Facebook (FB) stocks. Their price and market value information are provided below:

  • AAPL initial price ($) = 120
  • AAPL final price ($) = 130
  • AAPL initial and final number of shares (billions) = 18
  • FB initial price ($) = 300
  • FB final price ($) = 290
  • FB initial and final number of shares (billions) = 2.5

What is the return on the index? For simplicity, you can drop "billions".

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