Question
Consider a value-weighted market index that includes the following two companies. Answer the following questions. A. What is the total value of the two companies'
Consider a value-weighted market index that includes the following two companies. Answer the following questions.
A. What is the total value of the two companies' shares in day 1?
B. What is the total value of the two companies' sharea in day 2?
C. What is the percentage change in the index market from day 1 to day 2? HINT: The percentage change of a value-weighted index is just the percentage change in the total value of the stocks in the index.
| Company 1 | Company 2 | |||
|---|---|---|---|---|
| Day | price | number of shares | price | number of shares |
| 1 | $9 | 600 | $8 | 1,600 |
| 2 | $10.35 | 600 | $8.56 | 1,600 |
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Finance And Sustainability
Authors: Karolina Daszyńska-Żygadło, Agnieszka Bem, Bożena Ryszawska, Erika Jáki, Taťána Hajdíková
1st Edition
3030344037, 978-3030344030
