Calculate average daily rates of returns for index

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Reference no: EM132819884

Assume the following three stocks make up the market.

Share prices in $ Shares outstanding

DATE X Y Z X Y Z

1 20 40 30 1000 600 800

2 21 44 31 1000 600 800

3 19 23* 32 1000 1200 800

4 22 24 30 1000 1200 800

*2 for 1 stock split at end of day 2.

Calculate the stock index values for each day using

a) price weighted method.

b) value weighted method.

c) Calculate the daily index rates of returns for indexes determined in (a) and (b).

d) Calculate average daily rates of returns for each index.

Reference no: EM132819884

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