<<< Assume that there are two Stocks in the world (Stock A and Stock B) as Presented Below>>>

P0----------------Q0------------------P1----------------Q1

STOCK A---------------------35----------------200---------------29.75--------------200

STOCK B---------------------30----------------100-----------------27----------------100

P0 = Represents the Price Per Share at Time-Period 0 (today).

Q0 = Represents the Number of Shares Outstanding at Time-Period 0 (today).

P1 = Represents the Price Per Share at Time-Period 1 (one year from today).

Q1 = Represents the Number of Shares Outstanding at Time-Period 1 (one year from today).

( Assume that you have a Total of $65 to Invest on P0 ).

*Your portfolio is a Price-Weighted Average (a Price-Weighted Index) of the 2 stocks, what is your Rate of Return over the Peroid (from P0 to P1)?____________

* If your portfolio is an Equally-Weighted Index of the two stocks, how many shares of Stock B do you buy?__________

NOTE: You Can Buy a Fraction of a Share

*Which stock, if any, carries more weight when calculating the rate of return using the Price-Weighted Average method?__

A. STOCK A

B. STOCK B

C. THEY CARRY THE SAME WEIGHT

PLEASE ANSWER AND EXPALIN WITHOUT USING EXCEL

THANK YOU FOR YOU HELP