1) You own the following portfolio and wish to make an index of your portfolio performance. Use an initial index of 100 where appropriate.

Stock		t = 1	t = 2
A	500 shares	$58 per share	$63 per share
B	600 shares	$44 per share	$49 per share
C	200 shares	$61 per share	$55 per share

a) What is the value of the price weighted index at t = 1 and t = 2?

b) Assuming that t = 1 is the base year (Index = 100), what is the value weighted price at t = 2?

c) Briefly explain the advantages and disadvantages of each type of index.