Darien

gregorynep Wrote:
-------------------------------------------------------
> How come in the answer they use the ending market
> period to calculate return?
>
> To me, the correct method is to do a weighted
> average of the stock price changes using the
> Market Cap at 1/1/09 as weight.
>
> The problem says no stock splits or dividends, so
> the only reason for a difference between the price
> change and the market cap change is an acquisition
> or a spinoff, neither of which would cause a value
> weighted index to apprecaite.
>
> I got equally weighted as very narrowly beating
> out price weighted.
>
> thanks for any help in advance.

This example is directly out of the book...the book would be better than anyone else telling you how to do it.