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Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1

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Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1 25 Price May t=2 $32 Quantity May t2 20 Price June t=3 $32 Quantity June t=3 20 $28 30 ? ? ? ? 90 100 $26 100 B $88 30 $111 $25 90 $27 D $98 300 $111 E $29 10 $31 Note: Numbers are in millions of $ $26 $110 $35 300 $110 300 10 300 10 $35 10 A. Calculate the rate of return for a market value-weighted index for the first period (March till April). Among the 5 stocks, which stock's price change can affect the stock index the most? Why? B. Calculate the price of a price-weighted index for April C. In May, stock B splits 3-for-1. Calculate the price of a price-weighted index in May (Taking the stock split into account). D. What is the rate of return on a price-weighted index for the second period (April to May)? E. Calculate the rate of return for an equally weighted index for the last period (May to June) Question (1): The table below presents information about 5 stocks. Stock Price March t0 $43 Quantity March t=0 25 Price April El Quantity April t=1 25 Price May t=2 $32 Quantity May t2 20 Price June t=3 $32 Quantity June t=3 20 $28 30 ? ? ? ? 90 100 $26 100 B $88 30 $111 $25 90 $27 D $98 300 $111 E $29 10 $31 Note: Numbers are in millions of $ $26 $110 $35 300 $110 300 10 300 10 $35 10 A. Calculate the rate of return for a market value-weighted index for the first period (March till April). Among the 5 stocks, which stock's price change can affect the stock index the most? Why? B. Calculate the price of a price-weighted index for April C. In May, stock B splits 3-for-1. Calculate the price of a price-weighted index in May (Taking the stock split into account). D. What is the rate of return on a price-weighted index for the second period (April to May)? E. Calculate the rate of return for an equally weighted index for the last period (May to June)

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