Stock value weighted index


Please help with the following problem.

Create your own index given the following data:

Number
of shares Closing Prices (per share)
Companies outstanding Day T Day T+1
1 2,000 $30.00 $35.00
2 6,000 55.00 50.00
3 3,000 22.50 25.00
4 4,000 40.00 42.50

Assume that a stock value weighted index consisted of the four issues above. What are the values of the index for Day T and for Day T+1 and what is the change?

Please notice that it is the "value weighted index". Please show steps.

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Finance Basics: Stock value weighted index
Reference No:- TGS02045790

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