You have decided to create two of your very own stock indexes! Each index contains...
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Accounting
You have decided to create two of your very own stock indexes! Each index contains the same 5 stocks (which happen to be your favorite): Amazon, Apple, Nike, Starbucks, and Tesla. The only difference is the way the index is computed: the PRICE index is price-weighted, while the VALUE index is value-weighted.
You created each of these indexes after the market closed on November 30, and you set each index to have an initial value of 1000 (on Nov. 30). Below is the information for the 5 stocks at the close of November 30 and December 1 (the very next day). Calculate the value of each index (the PRICE index and also the VALUE index) on December 1.
November 30 December 1 Stock priceMarket c 567.0B 881.6B 78.3B 82.1B 51.9B 1176.75 171.85 60.22 57.82 308.85 Stock priceMarket c 563.5B 887.8B 77.8B 81.4B 51.5B 1169.35 173.05 59.88 57.32 306.53 Nike Starbucks Tesla
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