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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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