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Price weighted

You have a price weighted index made up of two stocks, A and B. The price of A equals $30 and the price of B equals $70. What is the current value of this index? Also, what will be the percentage change in the index resulting from a 10 % increase only in the price of A? A 10% increase only in the price of B?

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Price weighted is another name for the average. The current value of the index is ...

Solution Summary

Price weighted is explained.