Hey there,

Why do we have to multi $29,200/$29,200? Thank you

A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day rate of return on the index?

Index yesterday = $12(100)+$20(500)+$60(200) = $29,200 $29,200 = 100 Index today = $16(100)+$18(500)+$62(200) = $31,000 $29,200 = 106.16