Example of stock market index, Finance Basics

Assignment Help:

Example of Stock Market Index

The following six companies constitute the index of democratic republic of Kusadikika.

            Company

 A

 B

 C

 D

 E

 F

 Today's share price

 20

 52

 83

 12

 78

 100

 Yesterday's share price

 25

 53

 83

 10

 75

 96

Calculate the stock market index for today.

In construction or computation of stock index the following should be considered:

1. Option to choose of base year on such to base the price changes

2. The choice of representative securities or firms

3. Combining the securities or firms to construct the index as like employ of geometric mean

4. Employ of appropriate weight to be attached to the securities depending upon their relative significance.

5. The weights or number of firms in a sector is remained constant over a reasonably long duration.


Related Discussions:- Example of stock market index

Determine tax cash flows & irr, An industrial engineer proposed the purchas...

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

IS-LM, After read all the available information carefully, prepare a two pa...

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Calculate the total increment prize, Prudence buys a bond in EUR when it is...

Prudence buys a bond in EUR when it issued by the French government and inflation linked.  It offers a 2% yearly coupon.  She holds it for five years.             Par value: EUR

Differences between an ordinary annuity and an annuity due, 1. Describe the...

1. Describe the similarities and differences in between an ordinary annuity, an annuity due, and perpetuity.  Provide a methodical answer, including examples to demonstrate your po

Asset based valuation, Asset Based Valuation  This method acquires int...

Asset Based Valuation  This method acquires into account the entire business along with reference to its assets and then divides the resultant value via the number of shares i

Important points - creditors finances, Important Points - Creditors Finance...

Important Points - Creditors Finances When by using creditor's finances a company must consider: 1. That cost of finance is less than the Return that implies the rate shoul

Head office and branch or subsidiary, Head Office and Branch or Subsidiary ...

Head Office and Branch or Subsidiary MNC has diverse operations set up in dissimilar geographical locations. The HQ acts like the principal and the subsidiary like an agent he

Cost of redeemable debentures and preference shares, Cost of Redeemable Deb...

Cost of Redeemable Debentures and Preference Shares Redeemable fixed return securities have an exact maturity period.  The cost of those securities is called redemption yield

Tarniwala and dealer in non-cleared securities, Tarniwala and Dealer in N...

Tarniwala and Dealer in Non-cleared Securities Tarniwala: He/she is a specialist or jobber in selected shares. He/she makes market i.e. provide continuity to dealings. They

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd