Choose five stocks that are included in the DJIA. Download the daily closing prices for these five stocks for the past 30 days from the Yahoo! Finance Web site at http://finance.yahoo.com.

a. Compute and graph a daily price-weighted index for these five stocks over the past month. What was thereturn on theindex over the 30-day period?

b. Find the number of shares outstanding for thesefive companies. Using this information, calculate a market-weighted index for the 30-day period. Graph the index and compute the return on this index over the past month.

c. Construct and graph an unweighted averageindex for this five-stock portfolio. Computetherate of return on this index for the 30-day period.

d. Compare and contrast the graphs that you created and the 30-day returns you calculated.

e. How do you explain the differences among the graphs and thereturn calculations?