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Here are the prices for three stocks, at the beginning and at the end of the year. Stock Leopard Limited (50 million shares outstanding) Share

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Here are the prices for three stocks, at the beginning and at the end of the year. Stock Leopard Limited (50 million shares outstanding) Share Price on December 31st $60 $27 Share Price on January I $20 $11 Cheetah Corporation (30 million shares outstandin Impala International (62 million shares outstandin $22 The ICAN index (index of companies with animal names) is a price-weighted index comprised of these three stocks. a. Calculate the ICAN rate of return for the year. b. Suppose that VCAN is a value-weighted index (instead of being a price-weighted index) comprised of the same three stocks. Calculate the VCAN rate of return for the year. Suppose that the divisor for the ICAN index was 3.0 at the start of the year. At the end of the year, one of the companies was dropped from the index. Impala International was dropped from the index, and was replaced by Toucain Technology. At the end of the year, there were 10 million Toucan shares outstanding and the market price was $40 per share. Calculate the new divisor for the ICAN index. c

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