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stocks in the portfolio (i.e., the divisor of this index is just the number of different stocks in the portfolio, not the number of shares
stocks in the portfolio (i.e., the "divisor" of this index is just the number of different stocks in the portfolio, not the number of shares of each stock). He wishes to form an index based on 10 stocks. Given the following data , answer the questions that follow. a. Calculate the percentage price change for each stock from June 1, 2010, to June 1, 2016, and also from June 1,2016, to June 1, 2018. What do your calculations suggest about the general direction of the market? b. Calculate Peter's stock index (i.e., the average price of these 10 stocks) on each date, and then calculate the percentage change in the stock index from June 1, 2010 , to June 1, 2016 , and also from June 1, 2016 , to June 1, 2018. c. Offer a critique of Peter's index. Why might it fail to accurately capture the performance of the broader stock market? Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
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