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You want to form a price–weighted technology stock index using Apple, Google, and Netflix. Apple’s adjusted...

You want to form a price–weighted technology stock index using Apple, Google, and

Netflix. Apple’s adjusted closing price for 2019 is $293.65 and for 2018 is $155.41;

Google’s adjusted closing price for 2019 is $1,337.02 and for 2018 is $1,035.61; Netflix’s

adjusted closing price for 2019 is $323.57 and for 2018 is $267.66. What is the annual return

for your price–weighted technology stock index for 2019?

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Answer #1

Solution:

2018

2019

Apple

155.41

293.65

Google

1,035.61

1,337.02

Netflix

267.66

325.57

1956.24

　

Price-weighted index-2019 = Sum of the members' stock prices / No. of members

Price-weighted index-2019 = 1956.24 / 3 = $652.08

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