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2. An analyst gathers the following data. Stock BZ splits two-for-one during the period. Stock AX BZ CY Beginning of Period Price ($) Shares 20

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2. An analyst gathers the following data. Stock BZ splits two-for-one during the period. Stock AX BZ CY Beginning of Period Price ($) Shares 20 10000 80 200 40 2500 End of Period Price ($) Shares 32 10000 45 400 42 2500 a. Calculate the returns on both the price-weighted index and the market value- weighted index of three stocks over the period. b. Explain the difference in returns between the two indexes. (10 marks) 1

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