Consider a two period market consisting of four assets, W, X, Y , and Z. The following table displays the relevant information for the market where p^t refers to the price at time t. Please round your answers to three decimal places.

Asset p0 p1 Shares

W 52 74 432

X 2 4 11,345

Y 320 23 11

Z 120 112 767

(a) Compute the market capitalization for each stock at t = 0.

(b) Determine the weights of each asset in a price-weighted portfolio at time t = 0.

(c) Compute the percentage change in value of the price-weighted portfolio between t = 0 and t = 1.

(d) Determine the weights of each asset in a value-weighted portfolio at time t = 0.

(e) Compute the percentage change in value of the value-weighted portfolio between t = 0and t = 1.

(f) In a few sentences, briefly explain the difference between your answers to parts (c) and (E)