The Chompers Index is a price weighted stock index based on the 3 largest fast food chains.The stock prices for the three stocks are $54,$23,and $44.What is the price weighted index value of the Chompers Index?
A) 23.43
B) 35.36
C) 40.33
D) 49.58

Question

Quizplus · Accepted Answer

To calculate the price weighted index value, we need to multiply each stock price by its weight and then add them together. Assuming equal weights for each stock, the calculation would be: (54 + 23 + 44) / 3 = 40.33. Therefore, the correct answer is C.

The Chompers Index Is a Price Weighted Stock Index Based