Question
Question 2 Examine the information below and answer the following questions NUMBER CLOSING ( per shares company outstanding Day T Day T +1 1 2.000
Question 2 Examine the information below and answer the following questions
| NUMBER | CLOSING | ( per shares | |
| company | outstanding | Day T | Day T +1 |
| 1 | 2.000 | $30.00 | $35.00 |
| 2 | 6.000 | 55.00 | 50.00 |
| 3 | 3.000 | 22.50 | 25.00 |
| 4 | 4.000 | 40.00 | 42.50 |
a. Assume that a stock price-weighted indicator consisted of the four issues with their prices. What are the values for the Day T and T + 1 and what is the change? (10 marks) b. For a value-weighted series, assume that Day T is the base period. What is the new index value for Day T + 1 and how has the index changed from Day T? (10 marks) c. Assume that an investor had $4,000 to invest, compute an un-weighted price indicator series. What is the percentage change in wealth for this portfolio?
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Auditing And Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser
2nd Edition
0073128244, 9780073128245
