Question
Asked Oct 9, 2019
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(6) A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding
shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the
market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58
what is the new index value?
A) 960
B) 970
C) 975
D) 985
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(6) A benchmark index has three stocks priced at $23, $43, and $56. The number of outstanding shares for each is 350,000 shares, 405,000 shares, and 553,000 shares, respectively. If the market value weighted index was 970 yesterday and the prices changed to $23, $41, and $58 what is the new index value? A) 960 B) 970 C) 975 D) 985

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Shares Current Last Market Current Value market value outstanding Last Price Price N PO P1 PO x N P1 x N 8,050,000 350,000 23 23 8,050,000 43 405,000 41 17,415,000 16,605,000 553,000 56 58 30,968,000 32,074,000 Total 56,433,000 56,729,000

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