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Based on the following stock price and share outstanding information, compute the beginning and ending values for a price-weighted index and a market-value-weighted index 2019
Based on the following stock price and share outstanding information, compute the beginning and ending values for a price-weighted index and a market-value-weighted index 2019 2020 Price Price Stock K Stock M Stock R 20 80 40 Shares Outstanding 10,000,000 2,000,000 25,000,000 35 30 45 Shares Outstanding 10,000,000 6,000,000 25,000,000 1. Compute price-weighted index in 2019, assume initial divisor is 3. 2. In 2020, stock M has a 3-for-1 split. Calculate the new divisor. 3. Compute price-weighted index in 2020 with the new divisor. Is the price-weighted index rising or falling from 2019 to 2020? 4. Calculate value-weighted index for 2019 and 2020. Is the value-weighted index rising or falling from 2019 to 2020
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