Assume the following information concerning two stocks that make up an index. Wh

Question

Assume the following information concerning two stocks that make up an index. What is the price-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Assume the following information concerning two stocks that make up an index. What is the price-weighted return for the index? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Explanation / Answer

Price weighted return = [(62 - 55) x 39,000] + [(89 - 80) x 34,500] / [(39,000 x 55) + (34,500 x 80)] = 11.90%

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