The following table gives information about the five stocks that have traded on the Small Investors Stock Exchange (SISE) since it started two years ago:

None of the stocks pays a dividend.
a. Using all of the stocks, construct a simple price-weighted market index and compute the market returns for each year.
b. Using all of the stocks, construct a value-weighted market index and compute the market returns for each year.
c. Explain why the returns computed in parts (a) and (b) are notidentical.

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Price per Share End of Year 1 Number End of Year 2 Beginning Stock Startab Oakorn Teeduff Amxy Zaxive of Shares f Year 1 500 100 1,000 5,000 300 75.00 450.00 30.00 7.50 150.00 454.50 40.00 6.75 165.00 82.50 S100.00 460.00 38.50 13.50 148.50