1. Three stocks have share prices of $12 (A), $75 (B), and $30 (C) with total market values of $400 million, $350 million, and $150 million, respectively. If you were to construct a price-weighted index of the three stocks, what would be the index value? If one year late the stock price of A (+10%), B (+6%) and C (-8%), what would be the new value and return of this index? Show all calculations.

2. Use the information of the problem 1. and calculate the initial and final value, and return for an Equal Weighted Index using this 3 stocks. Show all calculations.