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19 January, 23:42

Three stocks have share prices of $17, $65, and $35 with total market values of $440 million, $390 million, and $190 million, respectively. if you were to construct a price-weighted index of the three stocks, what would be the index value?

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  1. 20 January, 00:30
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    A price-weighted index is simply the sum of the members' stock prices divided by the number of members.

    in this case (17+65+35) / 3 = price-weighted index
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