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Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Price Shares Outstanding Price Shares Outstanding Stock K

Consider the following stock price and shares outstanding information.

DECEMBER 31, Year 1 DECEMBER 31, Year 2
Price Shares Outstanding Price Shares Outstanding
Stock K $18 108,000,000 $34 108,000,000
Stock M 80 2,100,000 50 4,200,000a
Stock R 35 24,000,000 37 24,000,000
aStock split two-for-one during the year.

  1. 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:

  2. 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: %

  3. 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.

    %

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