Problem 4-02

You are given the following information regarding prices for a sample of stocks.

			PRICE
Stock	Number of Shares		T		T + 1
A	2,400,000		$74		$84
B	14,000,000		30		40
C	28,000,000		15		21

1. Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places.

   %

2. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places.

   Stock A: %

   Stock B: %

   Stock C: %

   Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places.

   %

3. Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal places.

   %