Hi, shouldnt you calculate the return on the market-value index by weighting the stocks with the market cap of Jan 09 and then use the change in price instead of change in market cap?
If there is a new stock issue that leads to a higher market cap then i havent earned the market cap change - i still just earned the price change???
the solution given just takes the market cap change as performance ans thats it - looks easy, but correct? |