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1. If your goal is to understand the movement of the broad stock market, are you better off following the Dow 30 or the S&P

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1. If your goal is to understand the movement of the broad stock market, are you better off following the Dow 30 or the S&P 500? Why? 2. When would the Dow 30 be more informative than the S&P 500? 3. When would the S&P 500 be more informative than the Dow 30? Use the following information for Problems 4 -7. Stock Beginning Price (s) Ending Price ($) Dividend (s) 45 60 3.00 12 27 1.15 200 180 5.75 A B 4. If A, B, and C form a price-weighted index, compute the price return. 5. If A, B, and form a price-weighted index, compute the total return. 6. If A, B, and form an equal weighted index, compute the price return. 7. If A, B, and C form an equal weighted index, compute the total return

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