Example of stock market index, Finance Basics

Assignment Help:

Example of Stock Market Index

The following six companies constitute the index of democratic republic of Kusadikika.

            Company

 A

 B

 C

 D

 E

 F

 Today's share price

 20

 52

 83

 12

 78

 100

 Yesterday's share price

 25

 53

 83

 10

 75

 96

Calculate the stock market index for today.

In construction or computation of stock index the following should be considered:

1. Option to choose of base year on such to base the price changes

2. The choice of representative securities or firms

3. Combining the securities or firms to construct the index as like employ of geometric mean

4. Employ of appropriate weight to be attached to the securities depending upon their relative significance.

5. The weights or number of firms in a sector is remained constant over a reasonably long duration.


Related Discussions:- Example of stock market index

Acceptance rule of irr, Acceptance Rule of IRR IRR will accept a ventu...

Acceptance Rule of IRR IRR will accept a venture if its IRR is higher than or equivalent to the minimum required rate of return such is usually the cost of finance also recogn

Bank draft, what is bank draft?How it can be prepared?

what is bank draft?How it can be prepared?

Mgmt640, Monroe, Inc., is evaluating a project. The company uses a 13.8 per...

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Find the no-arbitrage cost of the european call option, Question: Suppo...

Question: Suppose that a security is presently selling for a price of $65, the nominal interest rate is 8%, and the security volatility is 0.15. a) Determine Delta of a Euro

Definition of stock exchange, Definition of Stock Exchange According to...

Definition of Stock Exchange According to Pyle: "Stock Exchange are market places where securities which have been listed thereon, may be bought and sold for either investme

Stock exchange index or sei, Stock Exchange Index or SEI Stock Exchang...

Stock Exchange Index or SEI Stock Exchange Index is a measure of relative changes in prices of stocks from one duration to another index. Nairobi Stock Exchange twenty (20) -

Similarities between equity finance and preference, Similarities between Eq...

Similarities between Equity Finance and Preference Similarities among Equity Finance and Preference are as follows: a) Both may be permanent whether preference share capita

Share price, A firm just announced that it will cut its dividend from 4.9 d...

A firm just announced that it will cut its dividend from 4.9 dollars per share to 2.1 dollars per share at the end of this year. The dividend was expected to grow 2.7% every year b

Market segmentation theory, Market Segmentation Theory This theory sta...

Market Segmentation Theory This theory states as the main investors lenders and borrowers are confined to a particular segment of the market and will not change even whether t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd