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 $$22110,000,000$ $$35110,000,000$

Stock M $782,400,000434,800,000$a

Stock R $4521,000,0005021,000,000$

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.

PWIYear $1$:

PWIYear $2$:

VWIYear $1$:

VWIYear $2$:

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.

$\%$