Exercise

# Calculate the contribution of each stock to the index

You have successfully built the value-weighted index. Let's now explore how it performed over the 2010-2016 period.

Let's also determine how much each stock has contributed to the index return.

Instructions

**100 XP**

We have already imported `pandas`

as `pd`

and `matplotlib.pyplot`

as `plt`

for you. We have also loaded `components`

and the `index`

you worked with in the last exercise.

- Divide the last
`index`

value by the first, subtract 1 and multiply by 100. Assign the result to`index_return`

and print it. - Select the
`'Market Capitalization'`

column from`components`

. - Calculate the total market cap for all components and assign this to
`total_market_cap`

. - Divide the components' market cap by
`total_market_cap`

to calculate the component weights, assign it to`weights`

, and print`weights`

with the values sorted in default (ascending) order. - Multiply
`weights`

by the`index_return`

to calculate the contribution by component, sort the values in ascending order, and plot the result as a horizontal bar chart.