In: Finance
A benchmark index has three stocks priced at $7, $43, and $56. The number of outstanding shares for each is 500,000 shares, 405,000 shares, and 553,000 shares, respectively. 1) If the market value weighted index was 2560 yesterday and the prices changed to $23, $41, and $58 today, what is the new index value? 2) If the prices changed to $3.5, $44, and $52 and the number of outstanding shares for each changed to 1,000,000 shares, 405,000 shares and 553,000 shares today, what is the price weighted index value today if the index was 2020 yesterday? 3) If the prices and the number of outstanding shares changed as in 2), what is the equal weighted index value today if the index was 2819?