You want to form a value–weighted technology stock index using Apple, Google, and
Intel. Apple’s adjusted closing price for 2019 is $293.65 and for 2018 is $155.41;
Google’s adjusted closing price for 2019 is $1,337.02 and for 2018 is $1,035.61; Intel’s
adjusted closing price for 2019 is $59.85 and for 2018 is $45.79.
The additional information that you gathered is their market values at the end of 2018 or
beginning of 2019; in billions of dollars, Apple's market value is $740.93 B, Google's market
value is $790.06 B, and Intel's market value is $198.35 B. What is the annual return for
your value–weighted technology stock index for 2019?
Solution:
| MV | Weighted technology index | |
| Apple | 740.93 | 740.93 / 1729.34 = 42.84% |
| 790.06 | 790.93 / 1729.34 = 45.69% | |
| Netflix | 198.35 | 198.35 / 1729.34 = 11.47% |
| 1729.34 |
You want to form a value–weighted technology stock index using Apple, Google, and Intel. Apple’s adjusted closing...
You want to form a price–weighted technology stock index using Apple, Google, and Netflix. Apple’s adjusted closing price for 2019 is $293.65 and for 2018 is $155.41; Google’s adjusted closing price for 2019 is $1,337.02 and for 2018 is $1,035.61; Netflix’s adjusted closing price for 2019 is $323.57 and for 2018 is $267.66. What is the annual return for your price–weighted technology stock index for 2019?
You want to form a price–weighted technology stock index using Apple, Google, and Microsoft. Apple’s adjusted closing price for 2018 is $157.74 and for 2017 is $166.73; Google’s adjusted closing price for 2018 is $1,035.61 and for 2017 is $1,046.40; Microsoft’s adjusted closing price for 2018 is $101.57 and for 2017 is $84.08. What is the annual return for your price–weighted technology stock index for 2018?