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You create a market-value-weighted stock index using stocks X and Y. In period 0: Stock X price was $50/share and there are 20 shares of
You create a market-value-weighted stock index using stocks X and Y.
In period 0:
Stock X price was $50/share and there are 20 shares of X.
Stock Y price was $100/share and there are 20 shares of Y.
In period 1:
Stock X price was $60/share and there are 20 shares of X.
Stock Y price was $100/share and there are 20 shares of Y.
What was the percent return on the index from period 0 to period 1?
6.67% | ||
10% | ||
20% | ||
5% |
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