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Suppose an index consists of the following securities: Stock Shares Outstanding Beginning Share Price Ending Share Price A 2,000 $47 $50 B 5,000 $16 $15

Suppose an index consists of the following securities:

Stock Shares Outstanding Beginning Share Price Ending Share Price

A 2,000 $47 $50

B 5,000 $16 $15

C 3,000 $25 $28

Calculate the value-weighted index at the end of the year, assuming an initial index value of 100.

106.11

105.68

104.02

100.00

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