Question
Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1
Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1 base period, January year 3, and March year 3 follow. Base-year quantities are set on the basis of historical volumes for the four stocks.
Stock | Industry | Year 1 Quantity | Price per Share ($) | ||
---|---|---|---|---|---|
Year 1 Base | January Year 3 | March Year 3 | |||
A | Oil | 100 | 29.50 | 24.75 | 22.50 |
B | Computer | 150 | 65.00 | 49.00 | 49.50 |
C | Steel | 75 | 40.00 | 33.00 | 29.50 |
D | Real Estate | 50 | 16.00 | 6.50 | 2.75 |
Compute the price relatives for the four stocks making up the Boran index. (Round your answers to one decimal place.)
Stock | Price Relative | |
---|---|---|
January | March | |
A | ||
B | ||
C | ||
D |
Use the weighted average of price relatives to compute the January year 3 and March year 3 Boran indexes. (Round your answers to one decimal place.)
IJan=IMar=
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