Question: Consider the information below on stocks A, B, C, D Stock Number of shares Price of week 1 Price on week 2 Price on week

Consider the information below on stocks A, B, C, D

Stock

Number of shares

Price of week 1

Price on week 2

Price on week 3

A

200

2

3

4

B

300

4

5

3

C

400

15

16

14

D

500

5

6

5

a. Calculate the price-weighted average index for the four stocks in weeks 1, 2, and week 3

b. What is the percentage change in the average index among the three dates?

c. Calculate a value-weighted index using week 1as the base period and assign a value of 100 for the base level. What is the value of the index in week 2 and 3?

d. What is the percentage change in the index between the three dates?

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