Question
Stock 1: Number of shares outstanding =6,000 shares Price per share on (1)/(1)/2024=$20 Price per share on (2)/(1)/2024=$50 Stock 2: Number of shares
Stock 1: Number of shares outstanding
=6,000
shares\ Price per share on
(1)/(1)/2024=$20
\ Price per share on
(2)/(1)/2024=$50
\ Stock 2: Number of shares outstanding
=4,500
shares\ Price per share on
(1)/(1)/2024=$40
\ Price per share on
(2)/(1)/2024=$25
\ (a). Assume that a stock price-weighted index consisted of the above two stocks with their prices. What are the index values on 1/1/2024 and 2/1/2024 and what is the percentage change in the index value?\ (b). Now assume that the stocks described above are associated with a 2-stock value-weighted index, and not a price weighted index as in part (a). Answer the following questions (i)-(v) given this information:
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