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Mademuasel
17 days ago
13

A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $30, $38, and $90. The nu

mber of outstanding shares for each is 710 thousands shares, 610 thousands shares, and 310 thousands shares, respectively. If the stock prices changed to $34, $36, and $92 today respectively, what is the one-day rate of return on the index
Business
1 answer:
harina [3.2K]17 days ago
3 0

Answer:

The rate of return on the index for one day stands at 3.43%

Explanation:

Given the share prices were set at;

$30    for    710,000 shares

$38    for    610,000 shares

$90    for    310,000 shares

The fluctuations in share prices are as follows

$34-$30=4

$36-$38= -2

$92-$90=2

Return=change in price of shares/initial price of shares *100

Calculating the return gives us

4/30*100 =13.33

-2/38*100= -5.26

2/90*100 = 2.22

Summing these results yields 10.29

10.29 divided by 3 results in 3.43

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