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Following table shows the price information for three stocks: Stock Price 0 Quantity 0 P 1 Q 1 A $70 50 $85 50 B 10

Following table shows the price information for three stocks:

Stock

Price0

Quantity0

P1

Q1

A

$70

50

$85

50

B

10

150

12

150

C

100

30

50

60

  1. What happened for stock C during this period?
  2. Calculate the price-weighted index value at time 0 and at time 1 assume the divisor for time 1 is 2.35.
  3. What is the rate of return if you use price-weighted method?
  4. Calculate the market value-weighted index value at time 1.

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