Question 1

You are given the following information regarding four stocks in a portfolio:

Number of Shares 120 000 350 000 10 000 150 000 Company BIL JMMB MIL SIJL Price ($) 2019 5.00 12.50 119.00 3.75 Price ($) 2020 8.00 10.50 139.00 4.25 Assuming 2023 is the base year with an index value of 100: (a) Compute a price-weighted index of these four stocks for 2023. What is the percentage change in the value of the index from 2022 to 2023? (5 marks) (b) Compute a value-weighted index of these four stocks for 2023. What is the percentage change in the value (7 marks) of the index from 2022 to 2023? (c) Compute an unweighted index of these four stocks for 2023 if the investor has $40 000 000 to invest. (13 marks) What is the percentage change in the value of the index from 2022 to 2023? 1 (Total 25 marks)

You are given the following information regarding four stocks in a portfolio: Assuming 2023 is the base year with an index value of 100 : (a) Compute a price-weighted index of these four stocks for 2023. What is the percentage change in the value of the index from 2022 to 2023 ? (5 marks) (b) Compute a value-weighted index of these four stocks for 2023. What is the percentage change in the value of the index from 2022 to 2023 ? (7 marks) (c) Compute an unweighted index of these four stocks for 2023 if the investor has $40000000 to invest. What is the percentage change in the value of the index from 2022 to 2023? (13 marks)