There are two stocks in an index:
§ Company A has 50 shares valued at $2 each.
§ Company B has 10 shares valued at $10 each.
§ When the index started the price weighted index calculated out to $6, and the value-weighted index was 1.
The value of Stock B did not change but now Company A's stock is selling for $4 per share. What is the new price-weighted index, and what is the new value-weighted index?
|
|
A) |
|
Price-weighted |
Value-weighted |
|
6 |
0.95 |
|
|
|
|
B) |
|
Price-weighted |
Value-weighted |
|
8 |
2.00 |
|
|
|
|
C) |
|
Price-weighted |
Value-weighted |
|
10 |
1.25 |
|
|
|
|
D) |
|
Price-weighted |
Value-weighted |
|
7 |
1.50 |
|
|
The correct answer was D) Price-weighted 7，Value-weighted 1.50
Price weight = [(4) + (10)] / 2 = 7
Value weight = [(4)(50) + (10)(10)]/[(2)(50) + (10)(10)] = 1.5 | 
发表于 2006-4-17 15:20
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