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Question: Use the data below to answer the following questions: Stock A B D Number of Shares 2,000,000 4,000,000 8,000,000 6,000,000 Price (to) $40 $15

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Question: Use the data below to answer the following questions: Stock A B D Number of Shares 2,000,000 4,000,000 8,000,000 6,000,000 Price (to) $40 $15 $20 $20 Price (t) $50 $20 $25 $20 a) Using the above data, calculate the value of a price-weighted index at t if the index value at to is 1,000. Assuming that stock B underwent a 2 for 1 stock split after the close (at time t), what would be the new divisor? b) Using the above data (no stock split), calculate the value of a value-weighted index at ti assuming that the base value of the index at to is assumed to be 1000. c) Using the above data (no stock split), calculate the value of an equally-weighted (or un- weighted) geometric return index at tif the index value at to was 1000. Repeat for an arithmetic return index (equally-weighted)

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