If the Index Level Today Is 6188 Points and the Index

question 70

Essay

If the index level today is 6188 points and the index level yesterday was 6000 points, what was the weighted average of the changes in the share prices between day one and day two?

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Definitions:

Compounded annually

Interest on a deposit or loan calculated once per year, where each year's interest is added to the principal.

Semi-annual compounded

Interest on an investment is calculated twice a year and added to the principal.

Nominal rate

The stated or face interest rate on a loan or investment, not adjusted for inflation or the frequency of compounding.

Compounded annually

A way of calculating interest where the interest is added to the principal at the end of each year, leading to an increase in the amount on which the following year's interest is calculated.