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Rey and John are final year Business Administration students at Ocho Ries Community College. They are interested in doing research on the Jamaica Stock Market.
Rey and John are final year Business Administration students at Ocho Ries Community College. They are interested in doing research on the Jamaica Stock Market. Their area of focus is the stock market indices. They contact Mr. Wayne Brown the Marketing Manager of the Jamaica Stock Market who has committed to meet with them to answer their questions. Required: A. B. Briefly discuss THREE (3) uses of security market indicator series. (6 marks) You are given the following information regarding prices for stocks of the following firms: PRICE Stock Number of Shares T ScotBank Ltd. 1,000,000 Jetvan Ltd 10,000,000 PriceLife Ltd. 30,000,000 8822 T+1 60 80 20 35 18 25 i. Construct a price-weighted index for these three stocks and compute the percentage change in the series for the period from 1 to 7+1. (5 marks) ii. Construct a market-value-weighted index for these three stocks and compute the percentage change in the series for the period from 7 to 7+1. (5 marks) iii. Based on your answer above, which of these indexes BEST illustrate the movement on the stock market. (4 marks)
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