Hi Tutors, In calculating the rebased values to 100 am calculating it as 100* (share price now/by one day before) is this approach okay. Am seeing the solution is different.
By using that formula, you're calculating a standardised one-day return, which isn't cumulative. You need to use 100 *(share price now / share price at the start of the period) to get a cumulative standardised return.
I get I will be calculating the daily return now but why in the solution are they calculating it as (Share price now/share price previous day)*rebased value previous day. What is this calculating?
