National Stock Exchange has been recently established. Only three stocks have been listed in National Stock Exchange. Consider the following…
2025 · Solved Question with Answer
National Stock Exchange has been recently established. Only three stocks have been listed in National Stock Exchange. Consider the following information of listed companies and their respective closing prices:
| Stock | No. of Shares | Day 1 Price | Day 2 Price | Day 3 Price |
| A | 2000 | Rs 400 | Rs 500 | Rs 600 |
| B | 3000 | 200 | 220 | 240 |
| C | 4000 | 1600 | 1600 | 1800 |
a. Calculate the market index for date 1, date 2, and date 3 if the National Stock Exchange uses Price Weighted method and compute the percentage change in the index on day 2 and day 3.
b. Calculate the value weighted index for date 2, and 3. Assume the value weighted index on date 1 is 100 and compute the percentage change in the index on day 2 and day 3.
c. How do you adjust the effect of stock split in price weighted and value weighted index? Illustrate.