You want to form a price–weighted technology stock index using Apple, Google, an
ID: 2814170 • Letter: Y
Question
You want to form a price–weighted technology stock index using Apple, Google, and Intel. Apple’s adjusted closing price for 2018 is $189.62 and for 2017 is $145.93; Google’s adjusted closing price for 2018 is $1,217.26 and for 2017 is $930.50; Intel’s adjusted closing price for 2018 is $47.81 and for 2017 is $34.35. What is the annual return for your price–weighted technology stock index for 2018? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35
Explanation / Answer
Price weighted index is simply the average of all stock prices:
Average for 2017=(145.93+930.50+34.35)/3=370.26
Average for 2018=(189.62+1217.26+47.81)/3=484.90
Return = (484.90-370.26)/370.26
2017 2018 Apple $ 145.93 $ 189.62 Google $ 930.50 $ 1,217.26 Intel $ 34.35 $ 47.81 PWI $ 370.26 $ 484.90 Return 30.96%Related Questions
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