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Three stocks have share prices of $12, $75, and $30 with total market values of $400 million, $350 million, and $150 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?

Answer :

Answer:

index value = 39

Explanation:

given data

share prices = $12

total market values = $400 million

share prices = $75

total market values = $350 million

share prices = $30

total market values = $150 million

solution

we get here index value that is express as

the index is simply as sum of the prices and divide by number of stock

stock prices = 12 + 75 + 30 = 117

so we get here

index value is

index value =  [tex]\frac{117}{3}[/tex]    

index value = 39

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