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Stock K: Year1 - $20 Price, 105M Shares Outstanding; Year2 - $29 Price, 105M SO Stock M: Year1 - $86 Price, 2M Shares Outstanding; Year2

Stock K: Year1 - $20 Price, 105M Shares Outstanding; Year2 - $29 Price, 105M SO

Stock M: Year1 - $86 Price, 2M Shares Outstanding; Year2 - $46. Price, 4M SO

Stock R: Year1 - $35 Price, 28M Shares Outstanding; Year2 - $40 Price, 28M SO

A. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places.

  • PWIYear 1:_______
  • PWIYear 2:________
  • VWIYear 1:________
  • VWIYear 2:________

B. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.

  • Percentage change in PWI:_____%
  • Percentage change in VWI:_______%

C. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.

__________%

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