Three stocks have share prices of $20, $10, and $30 with total market values of $400 million, $350 million, and $150 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
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Three stocks have share prices of $20, $10, and $30 with total market values of $400 million, $350
million, and $150 million, respectively. If you were to construct a price-weighted index of the three
stocks, what would be the index value?
15
30
45
20
(6
SEP
19
MacE
Transcribed Image Text:Three stocks have share prices of $20, $10, and $30 with total market values of $400 million, $350 million, and $150 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value? 15 30 45 20 (6 SEP 19 MacE
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