Question: Bolded numbers at the very bottom are correct. Please provide formulas for those answers. Thank you! Index Example, Value Weighted Index Stocks Day 1 #
Bolded numbers at the very bottom are correct. Please provide formulas for those answers. Thank you!
| Index Example, Value Weighted Index | ||||||
| Stocks | Day 1 | # of Shares outstanding | Day 2 | # of Shares outstanding | Day 3 | # of Shares outstanding |
| MSFT | $50 | 1000 | $52 | 1000 | $53 | 1000 |
| XPO | $100 | 500 | $99 | 500 | $102 | 500 |
| BAC | $30 | 800 | $27 | 800 | $25 | 800 |
| CSCO | $42 | 900 | $43 | 900 | $46 | 900 |
| This Value Weighted index consists of 3 stocks initially with stocks MSFT, XPO, and BAC | ||||||
| After Day 1, stock BAC was replaced by CSCO | ||||||
| Please Construct Value Weighted Index Dany 1, Day 2, and Day 3 | ||||||
| Use 1000 as a first day index value | ||||||
| Initial Index (Day 1) | 1000 | |||||
| Stocks | Day 1 | Day 2 | Day 3 | |||
| MSFT | ||||||
| XPO | ||||||
| BAC | ||||||
| CSCO | ||||||
| SUM | ||||||
| Divisor | ||||||
| Index Value | ||||||
| New Divisor After Day 1 | ||||||
| Initial Index (Day 1) | 1000 | |||||
| Stocks | Day 1 | Day 2 | Day 3 | |||
| MSFT | $ 50,000 | $ 52,000 | $ 53,000 | |||
| XPO | $ 50,000 | $ 49,500 | $ 51,000 | |||
| BAC | $ 24,000 | |||||
| CSCO | $ 37,800 | $ 38,700 | $ 41,400 | |||
| SUM | $ 124,000 | $ 140,200 | $ 145,400 | |||
| Divisor | 124.00 | 137.80 | 137.80 | |||
| Index Value | 1000 | 1017.4165 | 1055.1524 | |||
| New Divsor After Day 1 | 137.8 | |||||
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