Company A has a stock price of $50 and 10 million shares outstanding, Company B has a stock price of $80 and 5 million shares outstanding, and Company C has a stock price of $120 and 3 million shares outstanding. What is the first step in calculating the market-capitalization-weighted stock index?

Question

Revolt · Accepted Answer

Multiply each company's stock price by its number of shares outstanding.

Practice Test

Company A has a stock price of $50 and 10 million shares outstanding, Company B has a stock price of $80 and 5 million shares outstanding, and Company C has a stock price of $120 and 3 million shares outstanding. What is the first step in calculating the market-capitalization-weighted stock index?

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