1. Below is list of companies and their stock prices, and the amount of their outstanding shares, build a price weighted index with a divisor of 5 based on this data.

Company	Stock Price	Shares Outstanding
A	$5	100,000 shares
B	$25	1 million shares
C	$250	10,000 shares

Based on the data above please construct a value weighted Index using a divisor of 5 again.

2. Below is a list of companies and their stock prices, and the amount of their outstanding shares, build a value weighted index with a divisor of 100 based on this data.

Company	Stock Price	Shares Outstanding
A	$50	10,000 shares
B	$2.5	10 million shares
C	$20	100,000 shares

3. Below is list of companies and their stock prices, and the amount of their outstanding shares, build

   1. A price weighted average index of these stocks with equal weights (meaning the divisor is 4)

   2. A value weighted average index of these stocks (choose a divisor you like to make reporting the index easy, but make sure the index is weighted by the market values of the companies

   3. If the price of Company T stock increases from $3 to $5, what is the impact on the price and value weighted index?

Company	Stock Price	Shares Outstanding
X	$3	1 mil
Y	$35	100 000
Z	$0.50	400 000
T	$3	2 mil

4. Below is a table that shows the stock price and the shares outstanding for 4 different companies.

Company	Stock Price	Shares Outstanding
X	$8	1000000
Y	$25	100000
Z	$0.5	10000000
T	$3	2000000

1. Rank these companies from smallest to largest in terms of value

2. Create a value weighted index for these companies by using a divisor of 10,000.

3. Show what happens to the value weighted index if the price of X goes up by a $1 and Z decreases by 50%.