p-stock index

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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5.

 

5. Use the data in the table below to compute both the DIJ-type index and the market-weighted index for
a hypothetical two-stock index. Discuss which index more accurately reflects the reality of the market.
Stock Price
Market Value
Company
Base year
Now
Number of Shares
Base Year
Now
Stock 1
$20
$30
100 million
$2 billion
$3 billion
Stock 2
$10
$2
50 million
$500 million
$100 million
Total
$2.5 billion
$3.1 billion
Transcribed Image Text:5. Use the data in the table below to compute both the DIJ-type index and the market-weighted index for a hypothetical two-stock index. Discuss which index more accurately reflects the reality of the market. Stock Price Market Value Company Base year Now Number of Shares Base Year Now Stock 1 $20 $30 100 million $2 billion $3 billion Stock 2 $10 $2 50 million $500 million $100 million Total $2.5 billion $3.1 billion
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