Q7) Stock Index: Calculate Index Returns Using the price data below for a three-stock index, calculate the Price Weighted Index Return (e.g., DJ and a Market Value Weighted Index Return (e.g., SP500) from day t=1 to day t=2. Stock ABC XYZ RLK Market Shares 100,000 500,000 250,000 t-1 Price 70 30 100 t=2 Price 75 29 110

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Q7) Stock Index: Calculate Index Returns
Using the price data below for a three-stock index, calculate the Price Weighted Index Return (e.g., DJIA)
and a Market Value Weighted Index Return (e.g., SP500) from day t=1 to day t=2.
Stock
ABC
XYZ
RLK
Market
Shares
100,000
500,000
250,000
t=1
Price
70
30
100
t=2
Price
75
29
110
Transcribed Image Text:Q7) Stock Index: Calculate Index Returns Using the price data below for a three-stock index, calculate the Price Weighted Index Return (e.g., DJIA) and a Market Value Weighted Index Return (e.g., SP500) from day t=1 to day t=2. Stock ABC XYZ RLK Market Shares 100,000 500,000 250,000 t=1 Price 70 30 100 t=2 Price 75 29 110
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