Calculate the value of the sp-six index

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Question: The SP-6 Index (a fictitious index) is used by many investors to monitor the general behavior of the stock market. It has a base value set equal to 100 at January 1, 1978. In the accompanying table, the closing market values for each of the six stocks included in the index are given for three dates.

a. Calculate the value of the SP-6 index on both January 1, 2016, and June 30, 2016, using the data presented here.

b. Compare the values of the SP-6 Index calculated in part a and relate them to the base index value. Would you describe the general market condition during the 6-month period January 1 to June 30, 2016, as a bull or a bear market?

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Reference no: EM131624154

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