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Three stocks have share prices of $39, $120, and $90 with total market values of $550...

Three stocks have share prices of $39, $120, and $90 with total market values of $550 million, $500 million, and $300 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?

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Answer #1

price wighted index is calculated as average of prices of stocks with which we construct the index

price weighted index = (39+120+90)/3 = 83

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