Answered

Get expert insights and reliable answers to your questions on IDNLearn.com. Join our interactive Q&A platform to receive prompt and accurate responses from experienced professionals in various fields.

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Stock Shares Outstanding Begin Price End Price A 4,500 $ 20 $ 25 B 7,000 $ 15 $ 12 C 3,000 $ 28 $ 35

Sagot :

Abiolataiwo2015idn

Answer:

14.29%

Explanation:

Calculation for the price-weighted index return

Price-weighted index return = [($25 + $12 + $35)/3] - [($20 + $15 + $28)/3]/[($20 + $15+ $28)/3]

Price-weighted index return =[($72/3)-($63/3)]/($63/3)

Price-weighted index return =($24-$21)/$21

Price-weighted index return =$3/$21

Price-weighted index return =0.1429*100

Price-weighted index return =14.29%

Therefore the Price-weighted index return will be 14.29%

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.