Find the return on a value-weighted index

Reference no: EM13293823

Suppose that on January 1, 2005, Intel Corporation was trading at $25 per share and there were 6.06 billion shares outstanding. Suppose also that on the same date Motorola was trading at $17 per share and there were 2.57 billion shares outstanding. Suppose that on January 1, 2006, the price of Intel's stock was $20 and the price Motorola's stock was $21.

Find the return on a value-weighted index of Intel and Motorola from January 1, 2005 to January 1, 2006.

Reference no: EM13293823

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