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QUESTION 2 (14 Marks) DECEMBER 31, 2020 DECEMBER 31, 2021 Price (RM) Shares outstanding Price (RM) Shares outstanding Stock A Stock B Stock C 30

QUESTION 2 (14 Marks)

DECEMBER 31, 2020

DECEMBER 31, 2021

Price (RM)

Shares outstanding

Price (RM)

Shares outstanding

Stock A

Stock B

Stock C

30

80

50

100,000,000

4,000,000

20,000,000

32

45

52

150,000,000

8,000,000

20,000,000

  1. Based on the above table, compute price-weighted index for 2020 and 2021. (4 marks)
  2. Based on the above table, compute market-value-weighted index (5 marks)
  3. Criticise why (a) and (b) is different results and conclude from both answers. (5 marks)

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