You are trying to create a stock index using three stocks. To recap, DJIA is...
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Accounting
| You are trying to create a stock index using three stocks. To recap, DJIA is a price-weighted index and S&P500 is a value-weighted index. |
| Each stock's data at t=0 (begin of day) and t=1 (end of day) is provided below. |
| Notice that Stock B is split 2 for 1. So, its price went down from $50 to $25, while the quantity went up from 80 to 160. |
| Stock | Price (t=0) | Quantity (t=0) | Price (t=1) | Quantity (t=1) |
| A | $10 | 40 | $15 | 40 |
| B | $50 | 80 | $25 | 160 |
| C | $140 | 50 | $130 | 50 |
If the Price-Weighted (PW) Index Value at t=0 is 100, what is the PW value at t=1?
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