Deepa Chungi wishes to develop an average, or index, that can be used to measure the general behavior of stock prices over time. She has decided to include 6 closely followed, high-quality stocks in the average or index. She plans to use August 15, 1967, her birthday, as the base and is interested in measuring the value of the average or index on August 15, 2013, and August 15, 2016. She has found the closing prices for each of the 6 stocks, A through F, at each of the 3 dates and has calculated a divisor that can be used to adjust for any stock splits, company changes, and so on that have occurred since the bese year, which has a divisor equal to 1.00. a. Using the data given in the table. . calculate the market averago, using the same methodology used to calculate the Dow averages, at each of the 3 dates-August 15, 1987, 2013 and 2016, b. Using the data given in the table and assuming a base index value of 10 on August 15, 1987, calculate the market index, using the same methodology used to calculate the S&P indexes, at each of the 3 dates. G. Use your findings in parls a and b lo describe the general market conditionbull or bear that existed belween August 15, 2013, and August 15, 2016. d. Calculate the percentage changes in the average and index values between August 15, 2013, and August 15, 2016. Why do they differ? a. The market average for 1987 is . (Round to two decimal places.) The market average for 2013 is (Round to two decimal places.) Data Table The market average for 2016 is (Round to two decimal places.) b. The market index for 1987 is 7. (Round to two decimal places.) The market index for 2013 is . (Round to two decimal places.) The market index for 2016 is . (Round to two decimal places.) Stock August 15, 2016 $46.42 $37.05 $20.62 $58.55 S82.49 $31.96 Divisor 0.68 Mots. The number of hann nt na Closing Stock Price August 15, 2013 August 15, 1987 $40.92 $50.74 $36.16 $9.53 $22.32 $7.13 $60.19 $25.59 $69.87 $45.59 $30.27 31.72 0.74 1.00 toalet din ba boon to come on bon de c. Both the market average and the market index show a general trend, indicating a market. (Select from the d. The percentage change in the average value is %. (Round 1 upward downward The percentage change in the Index value is L% (Round to wc Why do they differ? (Select the best answer below.) Print Done O A. The numbers differ because one is an average of stock prices on a particular day and the other is an Index compared to a base perlod value. OB. The numbers differ because one is an average of stock prices relative to a base period value and the other is an index on a particular day. Click to select your answer's). Deepa Chungi wishes to develop an average, or index, that can be used to measure the general behavior of stock prices over time. She has decided to include 6 closely followed, high-quality stocks in the average or index. She plans to use August 15, 1967, her birthday, as the base and is interested in measuring the value of the average or index on August 15, 2013, and August 15, 2016. She has found the closing prices for each of the 6 stocks, A through F, at each of the 3 dates and has calculated a divisor that can be used to adjust for any stock splits, company changes, and so on that have occurred since the bese year, which has a divisor equal to 1.00. a. Using the data given in the table. . calculate the market averago, using the same methodology used to calculate the Dow averages, at each of the 3 dates-August 15, 1987, 2013 and 2016, b. Using the data given in the table and assuming a base index value of 10 on August 15, 1987, calculate the market index, using the same methodology used to calculate the S&P indexes, at each of the 3 dates. G. Use your findings in parls a and b lo describe the general market conditionbull or bear that existed belween August 15, 2013, and August 15, 2016. d. Calculate the percentage changes in the average and index values between August 15, 2013, and August 15, 2016. Why do they differ? a. The market average for 1987 is . (Round to two decimal places.) The market average for 2013 is (Round to two decimal places.) Data Table The market average for 2016 is (Round to two decimal places.) b. The market index for 1987 is 7. (Round to two decimal places.) The market index for 2013 is . (Round to two decimal places.) The market index for 2016 is . (Round to two decimal places.) Stock August 15, 2016 $46.42 $37.05 $20.62 $58.55 S82.49 $31.96 Divisor 0.68 Mots. The number of hann nt na Closing Stock Price August 15, 2013 August 15, 1987 $40.92 $50.74 $36.16 $9.53 $22.32 $7.13 $60.19 $25.59 $69.87 $45.59 $30.27 31.72 0.74 1.00 toalet din ba boon to come on bon de c. Both the market average and the market index show a general trend, indicating a market. (Select from the d. The percentage change in the average value is %. (Round 1 upward downward The percentage change in the Index value is L% (Round to wc Why do they differ? (Select the best answer below.) Print Done O A. The numbers differ because one is an average of stock prices on a particular day and the other is an Index compared to a base perlod value. OB. The numbers differ because one is an average of stock prices relative to a base period value and the other is an index on a particular day. Click to select your answer's)
