1. Answer the questions that follow the table below: Company Stock Price ($/share) Citigroup $20 Google $450 Shares Outstanding (in Billions) 5.0 0.1 (i) Based on the information provided, construct initial values of each of the 3 types of indexes we discussed in the class (for value and equal-weighted indexes, initial values can be set arbitrarily to 100), and examine how each index value you computed in (i) would change if Citigroup's stock price increases 10% and Google's price drops by 20%. [10 marks] (ii) Compute return on each of the indexes following the events in (ii) and explain why these returns are different from each other. [5 marks] (iii) Suppose you are a fund manager managing $145,000. Assuming you can purchase any fraction of a share as well, how many shares in each of these companies will you have to buy to replicate the performance of each of the indexes? (10 marks] (iv) In order to track the performance (returns) of each of the indexes, will you have to rebalance your holdings of each stock when prices change? [5 marks]