Assume the value-weighted index level was 411.16 at the beginning of the year. W
ID: 2733031 • Letter: A
Question
Assume the value-weighted index level was 411.16 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You are given the following information concerning two stocks that make up an index.Assume the value-weighted index level was 411.16 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Explanation / Answer
Total value at the beginning = (36000*44) + (2700*55)
= 3609000
weighted index = 411.16
Common factor = 8777.60
Weighted index at the end = ((36000*48) + (27000*84))/8777.60
= 455.25
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