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Problem 4-06

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	$23		108,000,000		$35		108,000,000
Stock M	76		2,200,000		46		4,400,000a
Stock R	41		28,000,000		45		28,000,000
aStock split two-for-one during the year.

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.

PWI_{Year 1}:

PWI_{Year 2}:

VWI_{Year 1}:

VWI_{Year 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: %

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.

%