Suppose Stocks A, B and C are the only three component stocks in a benchmark index....

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Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B and C are 391,000 shares, 330,000 shares, and 245,000 shares, respectively. The prices of Stocks A, B and C for Days 1, 2, 3 and 4 are given in the table below: Stock A Stock B Stock C Day 1 31.29 42.37 79.65 Day 2 32.10 43.48 76.75 Day 3 32.10 41.62 78.04 Day 4 34.07 43.80 78.87 the benchmark value-weighted index was 1508.03 on Day 1, the benchmark value-weighted index on Day 3 was Suppose Stocks A, B and C are the only three component stocks in a benchmark index. The number of shares outstanding of Stocks A, B and C are 391,000 shares, 330,000 shares, and 245,000 shares, respectively. The prices of Stocks A, B and C for Days 1, 2, 3 and 4 are given in the table below: Stock A Stock B Stock C Day 1 31.29 42.37 79.65 Day 2 32.10 43.48 76.75 Day 3 32.10 41.62 78.04 Day 4 34.07 43.80 78.87 the benchmark value-weighted index was 1508.03 on Day 1, the benchmark value-weighted index on Day 3 was

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SOLUTION To calculate the benchmark valueweighted index we need to first calculate the market capita... View the full answer