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Berekuso Stock Exchange has five listed common stocks. Below are the prices and number of issued shares. Stock Shares outstanding (in millions) Closing price on

  1. Berekuso Stock Exchange has five listed common stocks. Below are the prices and number of issued shares.

Stock

Shares outstanding (in millions)

Closing price on Dec 31, 2012

Closing price on Jan 31, 2013

Akorno

2

GHS20

GHS25

Opanka

2.5

GHS15

GHS14

Columbiana

12

GHS18

GHS19

Vietnam

0.5

GHS10

GHS8

Arab Money

1.2

GHS35

GHS3

Required:

(a) Compute a price-weighted index for the stocks. Calculate the year-to-date rate of return on the index.

(b) Compute a market value-weighted index for the stocks. Calculate the year-to-date rate of return on the index.

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