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Price-weighted index and the return on the index

Stock Price # of Shares
a b c a b c
Day 1 13 24 50 500 700 250
Day2 15.2 22.25 55 500* 700 250
day3 7.4 25.3 54 1500 700 250**
day4 7.4 26.7 11.1 1500 700 1250

*3:1 Split on Stock A after close of Day 2
**5:1 Split on Stock C after close of Day 3

Calculate the price-weighted index and the return on the index for days 1,2, and 3

See attached file for full problem description.

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Stock Price # of Shares
a b c a b c
Day 1 13 24 50 500 700 250
Day2 15.2 22.25 55 500* 700 250
day3 7.4 25.3 54 1500 700 250**
day4 7.4 26.7 11.1 1500 700 1250

*3:1 Split on Stock A after close of Day 2
**5:1 Split on Stock C after close of Day 3

calculate the price-weighted index and the return on the index for days 1,2, and 3

A price-weighted average is calculated by adding up the prices of the index constituents and ...

Solution Summary

Calculates the price-weighted index and the return on the index

$2.19