Question: 2. a. Given the data in Problem 1, construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change

a. Given the data in Problem 1, construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this equal-weighted portfolio?

b. Compute the percentage of price change for each of the stocks in Problem 1. Compute the arithmetic average of these percentage changes. Discuss how this answer compares to the answer in 2a.

c. Compute the geometric average of the three percentage changes in 2b. Discuss how this result compares to the answer in 2b.

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