Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a Year 1 base period, January of Year 3, and March of Year 3 follow. Base-year quantities are set on the basis of historical volumes for the four stocks. 

Use the Year 1 base period to compute the Boran index for January of Year 3 and March of Year 3. Comment on what the index tells you about what is happening in the stock market.

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Price per Share ($) Year 1 Base March January Year 3 Stock Industry Quantity Year 1 Year 3 Oil 100 31.50 22.75 22.50 B Computer 150 65.00 49.00 47.50 Steel 75 40.00 32.00 29.50 Real estate 50 18.00 6.50 3.75