Assume the value-weighted index level was 257.98 at the beginning of the year. W
ID: 2637915 • Letter: A
Question
Assume the value-weighted index level was 257.98 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
You are given the following information concerning two stocks that make up an index.Assume the value-weighted index level was 257.98 at the beginning of the year. What is the index level at the end of the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Explanation / Answer
Outstanding Share
Beginning year
End Year
Kirk Inc
38000
47
52
Picard Co.
34500
77
83
Portfolio Value
4442500
4839500
Index Level =257.98*(4839500/4442500) =281.0341
Outstanding Share
Beginning year
End Year
Kirk Inc
38000
47
52
Picard Co.
34500
77
83
Portfolio Value
4442500
4839500