The four stocks listed in the text are part of
The four stocks listed in the text are part of an index.
Using the prior information,
a. Compute a price-weighted index by adding the stocks’ prices at time t and time t + 1. What is the percentage change in the index?
b. Compute a value-weighted index by adding their market values at time t and time t+1 What is the percentage change in the index?
c. Why is there a difference between your answers to Parts a and b?
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