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Given the following two stocks, and their prices and numbers of shares at t=0 and t=1. Stock N0 P0 N1 P1 J 100 25.00 200

Given the following two stocks, and their prices and numbers of shares at t=0 and t=1.

Stock N0 P0 N1 P1
J 100 25.00 200 12.50
K 200 12.50 200 15.00

Using the market-value weighted index, and set the initial index to 100. What is the market-value weighted index at t=1?

  • A.

    105

  • B.

    110

  • C.

    120

  • D.

    125

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