Question: Examine the two methods for determining the index returns for these three stocks. Price Weighed A B C Index HPR 16-Feb 13 15.00 $ 40.00

Examine the two methods for determining the index
Examine the two methods for determining the index returns for these three stocks. Price Weighed A B C Index HPR 16-Feb 13 15.00 $ 40.00 $ 55.00 51.94 -8.33% Value Weighted Value Index HPR 15-Feb $ 180,000.00 $ 50,000.00 $ 10,000.00 $240,000.00 100.00 Shares 9000 1000 100 16-Feb '- 135 000.00 '- 40000.00 $ 11,000.00 $186,000.00 77.50 -22.50% Shares 9000 1000 200 * Stock C had a 211 stock split after the market close on 2l15. a. In a short sentence, explain precisely why the returns for these indexes are so different. What, specically, drove the difference in this example? Bonus: What is the implication of these potential differences for measuring portfolio manager performance

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