Question

A benchmark index has three stocks priced at $34, $57, and $67. the number of outstanding shares for each is 405,000 shares, 515,000 shares, and 663,000 shares, respectively. if the market value weighted index was 920 yesterday and the prices changed to $34, $54, and $70, what is the new index value?
Plz help

Answer 1

First you need to divide shares by dollar amounts 405,000/34=11911.7 515,000/57=9035 663,000/67=9895 That would mean 57 and 67 changed, while 57 changed to 54 and 67 changed to 70 we then can find out So now we do 54*9035=487,890 and 70*9895=692,650 So that means The shares now are 11911.7$ 487,000$  692,650$