Video Lesson Day #4-Stock Market and Indexes Value-Weighted Index Example 1: Shares (SMl)Mkt Cap (SMiI) 22,743 3,526 77,973 104,241 40.56 560.72 GM Nordstrom 25.91 136.07 Home Depot 32.90 2370.00 Total MVI1) Day 1 Index Level = 104,241 / 104,241 x 1,000 Price Shares (SMil)Mkt Cap (SMil) 44.21 560.72 GM Nordstrom 27.25 136.07 Home Depot 33.50 2370.00 Total MVI2) Day 2 Index Level ( x1,000 = 1,035.02 Price Shares (SMI) Mkt Cap (SMil) GM43.25 560.72 Nordstrom 23.21 136.07 Home Depot 34.10 2370.00 Total MV(3): Day3 Index Level ( 24,251.1 3,158.2 0,817.0 x1,000 = 1,038.23 Example 2: You want to create a price-weighted index of the following three stocks. If you set the beginning index equal to 100, what will the ending index value be? Also, find the percentage increase/decrease over the period. Shares Beginning Market Stock Outstanding Share Price Alpha 2,000 Beta 5,000 Gamma 3,000 536 $17 Shares Ending Market Stock Outstanding Share Price Cap. Alpha 2,000 Beta 5,000 Gamma 3,000 $23 535 $19