Question: 2. Please answer the question 1) A benchmark index has three stocks priced at $20, $40, and $50. The number of outstanding shares for each

 2. Please answer the question 1) A benchmark index has three

2. Please answer the question 1) A benchmark index has three stocks priced at $20, $40, and $50. The number of outstanding shares for each is 100 shares, 200 shares, and 300 shares, respectively The value weighted index was 100 yesterday and the prices changed to $25, $42, and $55 today. 1) What is the new index value? (20points) II) What is the return on the index? (20points)

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