You have 5 stocks in your investment portfolio. You want to keep track of your portfolio's performance over the last 2 years. You have data on each of the stock's average price and the
Number of shares of each stock for every day of the last 2 years. Which of the following
Would be the most appropriate analysis to perform?
A) Simple price index
B) Laspeyres price index
C) Unweighted price index
D) Unweighted aggregate price index.

Question

Quizplus · Accepted Answer

The Laspeyres price index is appropriate as it uses a fixed base period quantity, allowing you to track the performance of your portfolio over time by considering both price changes and the number of shares held.

You Have 5 Stocks in Your Investment Portfolio