Question: If someone could help me solve this with clear steps to understand, it would be much appreciated. Thanks! current total market value of index stocks

 If someone could help me solve this with clear steps to

If someone could help me solve this with clear steps to understand, it would be much appreciated. Thanks!

current total market value of index stocks x 100 base year total market value of index stocks Example: Consider an index including three tech stocks (one share for each) in year 1. In year 1 (base year), the prices of Google, Apple and Snapchat are $1, $2 and $3. The Apple stock splits 2-for-1, effective after year 2. In year 2, those prices become $2, $1 and $5 (1) Compute the capitalization-weighted index for year 2. (2) Is stock-split adjustment necessary in this case

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