The Quad Index is comprised of four stocks: Uno, Dos, Tres, and Fore.

a.Given the data below on the number of shares outstanding and their share prices at time (t) and time (t + 1), what is the percentage change in the Quad Index if it is calculated as a price-weighted index? As a value-weighted index?

Stock # Of Shares Outstanding Price at Time (t) Price at Time (t + 1)

Uno 1000 $10 $11

Dos 500 20 21

Tres 250 40 42

Fore 100 50 60

b.Instead of the prices shown above, suppose we switch the prices for Uno and Fore. That is, Uno's stock price is $50 at time (t) and it rises to $60 by time (t + 1), and Fore's stock price rises from $10 to $11 over the same time frame. What is the percentage change in the Quad Index if it is computed as a price-weighted index? As a value-weighted index?

c. Explain similarities or differences in your answers to Parts (a) and (b).