9. A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day rate of return on the index?

Question

Business

Lane Rojas

14 February, 01:29

9. A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day rate of return on the index?

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Alexa Walls · Answer 1

6.16

Explanation:

Index return = [ ($16 * 600000 + $18 * 500000 + $62 * 200000):

($12 * 600000 + $20 * 500000 + $60 * 200000) ] - 1

= 6.16

Therefore, the one rate of return index is 6.16