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Assume that you want to re-index with the index value at the beginning of the year equal to 100....

Question:

Assume that you want to re-index with the index value at the beginning of the year equal to 100. What is the index level at the end of the year? (Round your answer to 2 decimal places.)

Shares Outstanding Price per Share Beginning of Year Price per Share End of Year:
Kirk Inc.: 44,000 $73 $81
Picard Co.: 30,500 114 122

Stock Index:

A stock index is the weighted average value of the stocks that constitute the index. For example, S&P 500 tracks the movement of the stocks of 500 stocks that are included in that index.

Answer and Explanation:

Formula on calculating the Index value is as follows:

{eq}End~of~year~Index~value=SOY~Index~value*\frac{(Stock~A~total~shares*EOY~Stock~price)+(Stock...

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Index Numbers in Statistics: Uses & Examples

from Business 110: Business Math

Chapter 7 / Lesson 1
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