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If you mean a standard index where each value is weighted by a reference value, then you just divide each value by the reference and multiply by 100. For instance, if you want to index x, y, and z based on z:

(x/z)*100, (y/z)*100, (z/z)*100

Obviously, your reference value should come out to 100.

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Value weighted index is a market average such as Standard & Poor's 500 Index that takes into account the market value of each security rather than calculating a straight price average. An equal weighted index is a type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund. The difference is one gives individual value and other gives one value to all.


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Related Questions

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