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Consider the following information on the stock market in a small economy. Price, beginning of year Company 1 2 3 Shares Outstanding 100 1,000 10,000

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Consider the following information on the stock market in a small economy. Price, beginning of year Company 1 2 3 Shares Outstanding 100 1,000 10,000 $110 $21 $9 Price, end of year $105 $24 $11 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 %. 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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