Utilizing the equal weighted series calculate the index values for each day for the market below....

Utilizing the equal weighted series calculate the index values for each day for the market below.

	closing prices			Number of outstanding shares(milions)
	A	B	C	A	B	C
1st jan 2020	200	400	300	100	200	100
2nd jan 2020	250	420	180	100	200	200
3rd jan 2020	270	450	80	100	600	200

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Solution

Equally weighted series is calculated as taking the average of the percentage change in the price of each stock and increasing/decreasing the prior day's index value by that average percentage. Assuming that 1st Jan 2020 is the base date, the index value is taken to be 100. The index values are calculated as follows:

jeff jeffy answered 1 year ago

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