Question: 18. Examine the two methods for determining the index returns for these three stocks. Price Weighed Index $ 56.67 $1.94 HPR 20.00 15.00 15-Feb $

 18. Examine the two methods for determining the index returns for
these three stocks. Price Weighed Index $ 56.67 $1.94 HPR 20.00 15.00

18. Examine the two methods for determining the index returns for these three stocks. Price Weighed Index $ 56.67 $1.94 HPR 20.00 15.00 15-Feb $ 16-Febs 100.00 55.00 B 50.00 $ 40.00 $ $ $ -8.33% Value Weighted Index 100 na NPR Value B HPR Price Weighed Index $ 56.67 51.94 15-Feb $ 16-Feb 20.00 $ 15.00 $ 100.00 55.00 50.00 $ 40.00 $ -8.33% Value Weighted Index 100.00 HPR Value 15-Feb $ 180,000.00 $ 50,000.00 $ 10,000.00 $ 240,000.00 Shares 9000 1000 100 16-Feb $ 135,000.00 $ 40,000.00 $ 11,000.00 $ 186,000.00 77.50 -22.50% Shares 9000 1000 200 *Consider that Stock C had a 2/1 stock split after the market close on 2/15. a. In a short sentence or paragraph, explain precisely why the returns for these indexes are so different. What, specifically, drove the difference? b. What is the implication of these potential differences for measuring portfolio manager performance

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