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INDEX NUMBERS. DOW JONES INDEX The DJIA is a price weighted index with a base year of 100 At T=0 At T=1.

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Presentation on theme: "INDEX NUMBERS. DOW JONES INDEX The DJIA is a price weighted index with a base year of 100 At T=0 At T=1."— Presentation transcript:

1 INDEX NUMBERS

2 DOW JONES INDEX The DJIA is a price weighted index with a base year of 100 At T=0 At T=1

3 DOW JONES INDEX If INTEL replaces CSX in the DJIA, then on the opening of day two, the index is: DJIA =

4 VALUE WEIGHTED INDEX

5

6 On 5/13/99, the value weighted index number is:

7 VALUE WEIGHTED INDEX IF General Electric increases in price by $5 on 5/14/99, then the new index number is;

8 VALUE WEIGHTED INDEX

9 IF Dupont increases in price by $5 on 5/14/99, then the new index number is;

10 VALUE WEIGHTED INDEX IF Intel replaces CSX in the index on 5/15/99, the new base (denominator is): X = 62500


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