Question
Based on the following stock price and shares outstanding information, compute the beginning and ending values for a price-weighted index and a market-value-weighted index. DECEMBER
Based on the following stock price and shares outstanding information, compute the beginning and ending values for a price-weighted index and a market-value-weighted index.
DECEMBER 31, 2017 DECEMBER 31, 2018 Stock K Stock M Stock R Price 20 80 40 Shares Outstanding Price 100,000,000 2,000,000 25,000,000 aStock split two-for-one during the year. a. Compute the percentage change in the value of each index during the year. b. Explain the difference in results between the two indexes. c. Compute the percentage change for an unweighted index and discuss why these results differ from those of the other indexe
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