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25 September, 21:27

Currently the S&P500 index is at 2,789.82. The current Base period is such that the denominator of the index is 2,500. The Numerator of the index goes up to 7,250,000 because of a merger of two companies and the introduction of a new company into the index. Calculate the new base period denominator of the index. Calculate the new base period denominator of the index.

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Answers (2)
  1. 25 September, 21:36
    0
    Answer: 2598.7

    Explanation:

    Numerator/denominator = 7250000/2500

    = 2900

    So from given numerator and denominator current value should be 2900

    But it is 2789.82 so difference = 2900-2789.82=110.18

    Current S&p value = numerator / denominator

    New base period denominator = 7250000/2789.82

    New base period denominator = 2598.7
  2. 25 September, 21:55
    0
    Check the explanation

    Explanation:

    Numerator/denominator = 7250000/2500

    = 2900

    So from given numerator and denominator current value should be 2900

    But it is 2789.82 so difference = 2900-2789.82=110.18

    Current S&p value = numerator / denominator

    New base Denominator = 7250000/2789.82

    New base denominator = 2598.7
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