Probleman equal-weighted index is comprised of three stocks, Ask an Expert

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Problem:

An equal-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively.

Required:

Question: If the stock prices changed to $16, $18, and $62 today respectively, what is the one day return of the equal-weighted index?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171097

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