Question

Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a 2007 base period, January 2009, and March 2009 follow. Base-year quantities are set on the basis of historical volumes for the four stocks.
Use the 2007 base period to compute the Boran index for January 2009 and March 2009.
Comment on what the index tells you about what is happening in the stock market.


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  • CreatedSeptember 20, 2015
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