Chapter $04$: Assignment $-$ Security Market Indexes and Index Funds

Consider the following stock price and shares outstanding information.

DeCEMber $31,$ Year $1$ DeCember $31,$ Year $2$

aStock split two$-$for$-$one during the year.

a$.$ Compute the beginning and ending values for a price$-$weighted index and a market$-$value$-$weighted index. Assume a base value of $100$ and Year $1$ as the

base period. Do not round intermediate calculations. Round your answers to two decimal places.

PWIYear $1$:

PWIYear $2$:

VWIYear $1$:

VWIYear $2$:

b$.$ Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal

places.

Percentage change in PWI:

Percentage change in VWI:

c$.$ Compute the percentage change for an unweighted index assuming $$1,000$ is invested in each stock. Do not round intermediate calculations. Round your

answer to two decimal places.