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