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Q 1 4 - You are given the following information regarding prices for a sample of stocks. a . Construct a price - weighted index

Q14- You are given the following information regarding prices for a sample of stocks.
a. Construct a price-weighted index for these three stocks, and compute the percentage
change in the index for the perod from T to T+1.
b. Construct a value-weighted index for these three stocks, and compute the percentage
change in the index for the perod from T to T+1.
c. Briefly discuss the difference in the results for the two indices. You purchased 100 shares of common stock on margin at $40 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25? Ignore interest on margin.
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