Question: A market-value weighted index (initial index value = 1000) is created using the following four stocks at Time 0. Although the quantities of the stocks

A market-value weighted index (initial index value = 1000) is created using the following four stocks at Time 0. Although the quantities of the stocks do not change, the prices change at Timel and Time2. Find the new index value at Time 1 and Time 2. Price (S) Stocks Time 0 Quantity 500,000 200,000 500,000 350,000 Time 1 Time 2 32.5 36.5 45.5 XYZ 13.5 19.75 34.67 17.5 19.5 LMN 20.25 22.55 41.71 IJK 31.63

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