Company Shares Outstanding Share Price on January 1, 2021 Share Price on January 1, 2022 Anchovy Airlines 300 million $62.00 $70.00 Manatee Motors 400 million $33.33 $39.50 Hammerhead Construction 200 million $235.50 $211.00 Porpoise Pharmaceuticals 900 million $18.75 $44.00 Tuna Technologies 900 million $199.00 $312.00

a) The PICAN (Price-Weighted Index of Companies with Aquatic Names) is a price-weighted stock index, comprised of the five companies shown above. None of the companies pay dividends. The divisor for the ICAN is 0.20. Calculate the value of the PICAN on January 1, 2021. Calculate the value of the PICAN on January 1, 2022. Calculate the rate of return for the PICAN over this period.

b) The VICAN (Value-Weighted Index of Companies with Aquatic Names) is a valueweighted stock index, comprised of the five companies shown above. None of the companies pay dividends. The divisor for the VICAN is 100 million. Calculate the value of the VICAN on January 1, 2021. Calculate the value of the VICAN on January 1, 2022. Calculate the rate of return for the VICAN over this period.