I have a day's worth of LSE data (FTSE100 companies) and I also have their weightings for the FTSE100.
Ignoring the net present value of money, how do I calculate the current value of the FTSE? I have multiplied the price of each underlying by its weighting and summed up but im not getting anything sensible?
To confirm, here are some of the weightings I have (circa July 2013):
- Vodafone: 5.658561
- Royal Dutch Shell(A): 5.00384
- Royal Dutch Shell(B): 3.513914
So is it just:
(VOD_price x 5.658561) + (RDSA_price x 5.00384) + (RDSB_price x 3.513914).....
or do I need to divide the weightings by 100 and do like above?