Given the following information concerning four stocks, Price Number of Shares Stock A $10 100,000 Stock B 17 50,000 Stock C 13 150,000 Stock D 20 200,000

a) Construct a simple price-weighted average, a value-weighted average, and a geometric average.

b) What is the percentage increase in each average if the stocks’ prices become:

i. A: $10, B: $17, C: $13, D: $40 ii. A: $10, B: $34, C: $13, D: $20?

c) Why were the percentage changes different in (i) and (ii)?