USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 4.7. If the December 31, 2011 value weighted index for ABC was 100, what is the value weighted index for ABC on December 31, 2012?
A) 108.35
B) 114.74
C) 120.19
D) 126.67
E) 131.54

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
 
-Refer to Exhibit 4.7. If the December 31, 2011 value weighted index for ABC was 100, what is the value weighted index for ABC on December 31, 2012?
A) 108.35 
B) 114.74 
C) 120.19 
D) 126.67 
E) 131.54

Quizplus · Accepted Answer

The value-weighted index is calculated by taking the total market value of the stocks in the index at the end of 2012 and dividing it by the total market value at the end of 2011, then multiplying by 100. The correct calculation results in an index value of 114.74.