To calculate the period return for a price-weighted index you do: sum of prices of all stocks in index time 2 / sum of prices of all stocks in index in time 1 How do you calculate the index return for an equal-weighted index?
say you have 6 stocks in period 1. each stock equal weight = 16.67
the 2nd year weight= 16.67 (1+return on the particular stock in year 2).
See the example 1 in the reading …