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Table Shares Stock c Price t 60 20 18 Price t+l 75 30 25 This question was created from Quiz_2_FIN_353_Version_B_Answers_with_detailed_Solutions[1]...

This question was created from Quiz_2_FIN_353_Version_B_Answers_with_detailed_Solutions[1] https://www.coursehero.com/file/6421314/Quiz-2-FIN-353-Version-B-Answers-with-detailed-Solutions1/

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Based on the three securities comprise a index. calculate the market value index for the period t+1? The answer textbook says is 140. but idk how to get that, please help.

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We compute the weighted average share price as above and then rebase the market index at... View the full answer

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  • weighted average share price at time t = (1,000,000 * 60 + 10,000,000 * 20 + 30,000,000 * 18)/ ( 1,000,000 + 10,000,000 + 30,000,000 ) weighted average share price at time t = (1,000,000 * 75 + 10,000,000 * 30 + 30,000,000 * 25)/ ( 1,000,000 + 10,000,000 + 30,000,000 )
    • bhaveshsanghvi123
    • Aug 05, 2018 at 8:35am

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Assumptions: - We want our initial market value index to be 100 - Period t is the index initial period Index divisor =... View the full answer

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