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Question (1): The table below presents information about 5 stocks. A 25 25 20 30 D $29 Price Quantity Price Quantity Price Quantity Price Quantity

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Question (1): The table below presents information about 5 stocks. A 25 25 20 30 D $29 Price Quantity Price Quantity Price Quantity Price Quantity Stock March March April April May May June June 1-0 1-0 -2 t-2 t-3 $43 $28 $32 $32 20 B $88 $111 30 ? ? ? $25 90 $27 90 $26 100 $26 100 D $98 300 $111 300 $110 300 $110 300 E 10 $31 10 $35 10 $35 10 Note: Numbers are in millions of 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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