USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 4.1. For a value-weighted series, assume that Day T is the base period and the base value is 100. What is the new index value for Day T + 1, and what is the percentage change in the index from Day T?
A) 106.33, 6.33 percent
B) 107.48, 7.48 percent
C) 109.93, 9.93 percent
D) 108.7, 8.7 percent
E) 107.56, 7.3 percent

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 4.1. For a value-weighted series, assume that Day T is the base period and the base value is 100. What is the new index value for Day T + 1, and what is the percentage change in the index from Day T?
A) 106.33, 6.33 percent 
B) 107.48, 7.48 percent 
C) 109.93, 9.93 percent 
D) 108.7, 8.7 percent 
E) 107.56, 7.3 percent

Quizplus · Accepted Answer

To calculate the new index value for Day T + 1 in a value-weighted series, you need to compare the total market value of the stocks on Day T + 1 to the total market value on Day T, using the base value of 100 as a reference. The percentage change in the index is then calculated based on the change in the index value from Day T to Day T + 1. Without the specific data from Exhibit 4.1, the correct answer cannot be determined directly from the question. However, assuming the correct calculation was made based on the provided data in Exhibit 4.1, the answer would involve calculating the total market value on both days, determining the ratio of Day T + 1's market value to Day T's, adjusting by the base value, and then calculating the percentage change.