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. Dividend ($) Stock Beginning Price ($) 45 B 12 200 Ending Price ($) 60 27 180 3.00 1.15 5.75 4. If A, B, and form a price-weighted index, compute the price return. 5. If A, B, and form a price-weighted index, compute the total return. 6. If A, B, and C form an equal weighted index, compute the price return. 7. If A, B, and form an equal-weighted index, compute the total return. Use the following information for Problems 8-9. Stock Beg. Price ($) Beg. # Shares End. Price ($) End. # Shares Dividend ($) 100 100 160 125 3.00 145 200 130 3.50 250 300 300 350 4.50 B 100 8. If A, B, and C form a price weighted index, compute the price return. 9. If A, B, and C form a price-weighted index, compute the total return. Use the following information for Problem 10. The data are for a price-weighted index (e.g., Dow 30). Stock Initial Price ($) Final Price ($) 150 200 B 300 280 A 10. a) What is the initial value of the index? b) If Stock A does a 2-for-1 split at the beginning of the period, what is the divisor d that preserves the index's value