Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Now assume that you have 50 shares of AAPL and 20 shares of FB (i.e., the ratio between AAPL and FB market values is 5:2).

Now assume that you have 50 shares of AAPL and 20 shares of FB (i.e., the ratio between AAPL and FB market values is 5:2).

Calculate the Price-weighted Index (Index Value and Index Return) and Market Value-weighted Index (Index Value and Index Return).

Can you also write the steps and example of a few on how to calculate it so I understand the process? Thank you.

AAPL

FB

Price-weighted Index

Market Value-weighted Index

Date

Adj Close

Return

Date

Adj Close

Return

Index Value

Index return

Index Value

Index return

1/1/2015

106.9111

1/1/2015

75.91

2/1/2015

117.2226

0.0964492

2/1/2015

78.97

0.040311

3/1/2015

113.9932

-0.027549

3/1/2015

82.22

0.041155

4/1/2015

114.6528

0.0057865

4/1/2015

78.77

-0.04196

5/1/2015

119.3526

0.0409908

5/1/2015

79.19

0.005332

6/1/2015

115.3893

-0.033206

6/1/2015

85.77

0.083091

7/1/2015

111.5899

-0.032927

7/1/2015

94.01

0.096071

8/1/2015

103.8808

-0.069085

8/1/2015

89.73

-0.04553

9/1/2015

101.9298

-0.018781

9/1/2015

89.9

0.001895

10/1/2015

110.4316

0.0834089

10/1/2015

101.97

0.13426

11/1/2015

109.3227

-0.010042

11/1/2015

104.24

0.022261

12/1/2015

97.68863

-0.10642

12/1/2015

104.66

0.004029

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Modern Approach

Authors: Sanjay Basotia

1st Edition

938092903X, 978-9380929033

More Books

Students also viewed these Accounting questions

Question

Create a workflow analysis.

Answered: 1 week ago