3. Time-weighted average price (TWAP) is a performance measure where child orders are spread uniformly over a given time interval, while Volume-weighted average price (VWAP) is a very popular benchmark method to quantify execution performance. If an asset during some time interval has N trades with price pk and volume vk, its VWAP is 1 Jeremy is a trader and he was asked to sell 20, 000 shares of AAPL stock. He finished his typical 6 hours trading day with the following trading records in a spreadsheet Period (k)12345 Volume (vk)2000 1000 1500 1100 2400 2400 Price (pk59.9038.49 44.12| 67.5066.30 160.32 Each of the six periods is one hour a). Please calculate both VWAP and TWAP (hint: a simple average for the six periods is TWAP). (6 pts) b). What is the difference and why traders would prefer to use VWAP? (4 pts)