Question
Hi, could somebody please help me with this problem. thank you 1. You are given the following information regarding prices for stocks of the following
Hi, could somebody please help me with this problem.
thank you
1. You are given the following information regarding prices for stocks of the following firms:
Stock /Number of Shares/ T / T+ 1
Lauren Corp. /1,000,000/ 60 /80
Kayleigh Co./10,000,000 /20 /35
Madison Ltd. /30,000,000/ 18 /25
a. Construct a price-weighted index for these three stocks, and compute the percentage change in the
series for the period from T to T + 1.
b. Construct a market-value-weighted index for these three stocks, and compute the percentage
change in the series for the period from T to T + 1.
c. Briefly discuss the difference in the results for the two stock indexes.
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