equally weighted index return?

Answer 1

Not quite sure what you're asking, but I'll take a stab.

If you're asking what an equally weighted index is. An equally weighted index is a group of stocks, etc. where you start with an equal dollar amount of each. So if you had GOOG and MSFT in your index, you might only have 10 shares of GOOG, but 250 shares of Microsoft represented in your index.

To calculate your return at any given time, you just take the current price of your index (multiply the shares of each stock X the current stock price) and then take that number and divide it by the price of the index from the time you're comparing it too.

These equally weighted indexes will give you a much different return than market cap weighted indexes like the DOW and other major indexes where the size of the company gives weighting for how much of the index is represented by that company.

Hope that answers your question!

Answer 2

What exactly is your question?