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To: TimF who wrote (24049)8/23/2001 2:10:25 PM
From: sea_biscuit  Read Replies (1) | Respond to of 25814
 
Tim :

In your example, to start with, the market cap of B was twice as that of A. So, the "S&P 2" index will have weighting of 1/3 for A and 2/3 for B. If A doubles and B gets halved, then they essentially change places and the return for the index is 0%