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p0 q0 p1 q1 p2 q2 Mkt Cap A 90 100 95 100 98 100 B 45 200 50 200 50 200 C 30 200

p0 q0 p1 q1 p2 q2 Mkt Cap
A 90 100 95 100 98 100
B 45 200 50 200 50 200
C 30 200 30 200 10 400
Sum

Weights

Market weights Price weights stock return

A

B

C

Market index return=?

Price index return?

(Pt C)Original index

New Prices

A

B

C

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