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Consider the following information on the stock market in a small economy. Price, beginning of Shares Outstanding 100 year $140 $24 $12 Company 1 2
Consider the following information on the stock market in a small economy. Price, beginning of Shares Outstanding 100 year $140 $24 $12 Company 1 2 3 1,000 10,000 %. Price, end of year $135 Instructions: Enter your responses rounded to one decimal place. a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? The percentage change is $27 $10 %. b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? (Note: The value of a firm is calculated by multiplying the number of its shares by the prices of those shares.) The percentage change is
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