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You are given the following information regarding prices for a sample of stocks. A. Briefly discuss the uses of security market indices. (4 marks) B.

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You are given the following information regarding prices for a sample of stocks. A. Briefly discuss the uses of security market indices. (4 marks) B. Construct a price weighted index for these three stocks and compute the percentage change in the index for the period from T to T+1. (6 marks) C. Construct a value weighted index for these three stocks and compute the percentage change in the index for the period from T to T+1. (6 marks) D. Briefly discuss the differences in the results for the two indices. (4 marks) (Total 20 marks) You are given the following information regarding prices for a sample of stocks. A. Briefly discuss the uses of security market indices. (4 marks) B. Construct a price weighted index for these three stocks and compute the percentage change in the index for the period from T to T+1. (6 marks) C. Construct a value weighted index for these three stocks and compute the percentage change in the index for the period from T to T+1. (6 marks) D. Briefly discuss the differences in the results for the two indices. (4 marks) (Total 20 marks)

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