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Suppose you are given the following information regarding prices for a sample of stocks. Stock Price at T Price at T+1 Number of Shares Outstanding
Suppose you are given the following information regarding prices for a sample of stocks. Stock Price at T Price at T+1 Number of Shares Outstanding 3,000,000 20,000,000 $90 $100 Acme Industries EcoTrust $30 $45 Digital Designs 60,000,000 $15 $28 NOTE: Only 1 (one) file can be uploaded and it should contain your answers to each part of this question. A. Construct a price-weighted index for these three stocks and compute the percentage change in the index from time T to T+1. Show your calculations. (5 Points) B. Construct a value-weighted index for these three stocks and compute the percentage change in the index from time T to T+1. Show your calculations. (5 Points) C. Discuss the difference in the results for the two indices you constructed. (4 Points)
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