Market value = number of fund shares held * current fund price
Market value
Definition: The market value of a stock is the total value of the stock calculated according to the market price.
For example, the total market value of a portfolio is the sum of the market values of all stocks calculated according to the price at a certain moment. If the portfolio (A, B, C, D, 1, 1, 5) and the prices of stocks A, B, C and D are 1. 5 yuan, 3 yuan, 6 yuan and 2 yuan, then the market value of this portfolio is:
1.5×1+3×1+6×1+2× 5 = 20.5 (yuan)
The total market value of a stock market is the sum of the market values of all stocks calculated according to the closing price of a certain day.
For the convenience of the following description, it is now agreed to express the market value of a portfolio at t as a function Ft(A, b, c, D…, N 1, N2, N3, N4…), where a, b, c, d, etc. They are all the names of stocks, and there are N 1, N2, N3, N4 and so on. Was chosen.
Theorem: In stock investment, if the portfolio is the same, the return on investment is equal.
If you buy stocks with a portfolio (A, B, C, D…, N 1, N2, N3, N4…) on the nth day and sell them on the p day, the return on investment is r:
R = (the value when selling on P day-the value when buying on N day)/the value when buying on N day.
=(FP(A、B、C、D…，N 1、N2、N3、N4…)-Fn(A、B、C、D…，N 1、N2、N3、N4…)/Fn(A、B、C、D…，N 1、N2、N3、N4…)
When the weight of one portfolio is k times that of another, the market value of the former is k times that of the latter. In the above formula, both the numerator and denominator are multiplied by k, and their values are still equal.
With the concepts of portfolio and market value, it is easier to understand the stock index.
In general securities books and periodicals, the stock index is expressed as:
Stock index = coefficient × (sum of real-time market value of some stocks/) The real-time market value of some stocks is actually the real-time market value of a portfolio. For the convenience of expression, this portfolio included in the index will be called index portfolio in the future, and its market value at T is defined as Zt(A, b, c, D…, N 1, N2, N3, N44 …), where A, b, c, D… are stock names and N 1, N2.
ZSt=K×Zt(A，B，C，D…，N 1，N2，N3，N4…)( 1)
Real-time stock index = coefficient K× real-time market value of index combination (2)