A market value weighted index has three stocks in it, call them A, B, and C. priced at 53, 83, and 69 per share. Each firm has 404, 282 and 458 thousand shares outstanding, respectively. The value of the index at that time is 804. Over the course of the next quarter, the prices of the three stocks change to 99, 62, 38, respectively. What is the new value of the index? Enter answer accurate to two decimal places.
A market value weighted index has three stocks in it, call them A, B, and C. priced at 53, 83, and 69 per share. Each firm has 404, 282 and 458 thousand shares outstanding, respectively. The value of the index at that time is 804. Over the course of the next quarter, the prices of the three stocks change to 99, 62, 38, respectively. What is the new value of the index? Enter answer accurate to two decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A market value weighted index has three stocks in it, call them A, B, and C, priced at 53, 83, and 69
per share. Each firm has 404, 282 and 458 thousand shares outstanding, respectively. The value of
the index at that time is 804. Over the course of the next quarter, the prices of the three stocks
change to 99. 62, 38, respectively. What is the new value of the index?
Enter answer accurate to two decimal places.
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