Problem:
An equal-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively.
Required:
Question: If the stock prices changed to $16, $18, and $62 today respectively, what is the one day return of the equal-weighted index?
Note: Show supporting computations in good form.