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You have decided to create a value-weighted index and a price-weighted index using five representative stocks - Netflix, Texas Instruments, McDonalds, Walmart, and Comcast. At

You have decided to create a value-weighted index and a price-weighted index using

five representative stocks - Netflix, Texas Instruments, McDonalds, Walmart, and

Comcast. At the end of day one, Netflixs stock has a price of $380 per share and 5

million shares outstanding, Texas Instruments stock has a price of $180 per share and 9

million shares outstanding, McDonalds stock has a price of $240 per share and 8 million

shares outstanding, Walmarts stock has a price of $145 and 30 million shares

outstanding, and Comcasts stock has a price of $50 and 40 million shares outstanding.

You have decided that the beginning value of each index at the end of day one will be

100.

What is the value of each index at the end of day two if Netflixs stock price is $350 per

share, Texas Instruments stock price is $140 per share, McDonalds stock price is $230

per share, Walmarts stock price is $140 per share and Comcasts stock price is $50 per

share? (Show me your formulas or tables such as we did together in class)


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