Exercise 1 Using the information provided in Figure 8. Calculate the price-weighted index for the month of July for these companies. What adjustment is required for the Duke Energy 1:3 reverse stock split? How did you account for the removal of Goodrich from the index? Exercise 2 What is the overall change in index value for the month of July using the priceweighted index? Which stock increased in value the most? Which declined the most? Which company(ies) appear to be influencing the price-weighted index the most? Exercise 3 Using the information provided in Figure 8. Calculate the market-weighted index for the month of July for these companies. What adjustment is required for the Duke Energy 1:3 reverse stock split? How did you account for the removal of Goodrich from the index? Exercise 4 What is the overall change in index value for the month of July using the marketweighted index? Which market capitalization increased in value the most? Which declined the most? Which company(ies) appear to be influencing the price-weighted index the most? Exercise 5 Given the information from Exercises 1-4, which method should Brooks suggest that his manager use in her presentation to clients? Why?

UFS 76.95 78.74 Figure 8. Daily Stock Prices for Fortune 500 Companies in Charlotte, NC Region - July 2012 Date GR BAC LOW NUE DUK FDO SAH SPW Monday, July 02, 2012 127.00 8.05 28.62 37.87 23.28 67.95 14.05 64.95 Tuesday, July 03, 2012 127.04 8.06 27.62 38.90 68.69 6728 14.71 65.85 Wednesday, July 04, 2012 Thursday, July 05, 2012 127.11 7.82 27.58 38.86 68.57 68.23 14.97 66.07 Friday, July 06, 2012 127.12 7.66 27.85 38.35 66.23 69.58 14.86 64.36 Monday, July 09, 2012 127.05 7.56 27.28 38.26 65.31 70.38 14.55 62.67 Tuesday, July 10, 2012 127.10 7.48 27.17 37.70 66.14 69.82 14.53 59.85 Wednesday, July 11, 2012 127.08 7.63 26.67 37.79 66.48 69.93 14.52 59.02 Thursday, July 12, 2012 127.02 7.48 26.57 37.70 66.64 68.65 14.77 59.56 Friday, July 13, 2012 127.18 7.82 26.72 38.42 66.74 67.47 15.81 60.94 Monday, July 16, 2012 127.11 7.81 25.80 38.03 66.74 68.39 15.86 59.45 Tuesday, July 17, 2012 127.18 7.92 25.55 38.28 66.34 68.39 16.16 60.48 Wednesday, July 18, 2012 127.25 7.53 25.66 38.71 66.07 66.43 16.61 61.85 Thursday, July 19, 2012 127.15 7.26 26.03 38.23 66.12 66.06 16.86 62.52 Friday, July 20, 2012 127.18 7.07 25.79 37.96 66.22 66.77 16.45 61.05 Monday, July 23, 2012 127.15 7.09 25.77 37.85 65.50 66.15 16.46 60.31 Tuesday, July 24, 2012 127.18 7.04 25.77 37.12 65 27 66.52 16.84 59.38 Wednesday, July 25, 2012 127.20 7.07 25.60 36.82 65.82 64.52 17.38 59.39 Thursday, July 26, 2012 127.48 7.17 26.60 37.30 65.34 66.35 17.01 60.60 Friday, July 27, 2012 7.31 27.07 38.48 67.46 66.63 17.35 63.79 Monday, July 30, 2012 7.28 26.86 38.50 68.07 66.70 17.22 61.69 Tuesday, July 31, 2012 7.34 25.37 39.20 67.78 66.08 17.12 60.72 78.25 78.25 78.36 74.92 74.29 74.25 75.23 74.58 76.06 78.23 76.84 75.86 75.21 74.03 72.39 73.40 72.38 74.86 73.86 Shares Outstanding 128.63 10.77617 million billion 1.228 billion 318.04 million 446.04 million 117.53 milion 52.59 million 49.95 million 36.6 million A: Goodrich purchased after market close on July 28 by United Technologies. B: Duke Energy conducts a reverse stock split of 1:3 after market close on July 2. C: Following reverse stock split for Duke Energy there were 446.04 shares outstanding. UFS 76.95 78.74 Figure 8. Daily Stock Prices for Fortune 500 Companies in Charlotte, NC Region - July 2012 Date GR BAC LOW NUE DUK FDO SAH SPW Monday, July 02, 2012 127.00 8.05 28.62 37.87 23.28 67.95 14.05 64.95 Tuesday, July 03, 2012 127.04 8.06 27.62 38.90 68.69 6728 14.71 65.85 Wednesday, July 04, 2012 Thursday, July 05, 2012 127.11 7.82 27.58 38.86 68.57 68.23 14.97 66.07 Friday, July 06, 2012 127.12 7.66 27.85 38.35 66.23 69.58 14.86 64.36 Monday, July 09, 2012 127.05 7.56 27.28 38.26 65.31 70.38 14.55 62.67 Tuesday, July 10, 2012 127.10 7.48 27.17 37.70 66.14 69.82 14.53 59.85 Wednesday, July 11, 2012 127.08 7.63 26.67 37.79 66.48 69.93 14.52 59.02 Thursday, July 12, 2012 127.02 7.48 26.57 37.70 66.64 68.65 14.77 59.56 Friday, July 13, 2012 127.18 7.82 26.72 38.42 66.74 67.47 15.81 60.94 Monday, July 16, 2012 127.11 7.81 25.80 38.03 66.74 68.39 15.86 59.45 Tuesday, July 17, 2012 127.18 7.92 25.55 38.28 66.34 68.39 16.16 60.48 Wednesday, July 18, 2012 127.25 7.53 25.66 38.71 66.07 66.43 16.61 61.85 Thursday, July 19, 2012 127.15 7.26 26.03 38.23 66.12 66.06 16.86 62.52 Friday, July 20, 2012 127.18 7.07 25.79 37.96 66.22 66.77 16.45 61.05 Monday, July 23, 2012 127.15 7.09 25.77 37.85 65.50 66.15 16.46 60.31 Tuesday, July 24, 2012 127.18 7.04 25.77 37.12 65 27 66.52 16.84 59.38 Wednesday, July 25, 2012 127.20 7.07 25.60 36.82 65.82 64.52 17.38 59.39 Thursday, July 26, 2012 127.48 7.17 26.60 37.30 65.34 66.35 17.01 60.60 Friday, July 27, 2012 7.31 27.07 38.48 67.46 66.63 17.35 63.79 Monday, July 30, 2012 7.28 26.86 38.50 68.07 66.70 17.22 61.69 Tuesday, July 31, 2012 7.34 25.37 39.20 67.78 66.08 17.12 60.72 78.25 78.25 78.36 74.92 74.29 74.25 75.23 74.58 76.06 78.23 76.84 75.86 75.21 74.03 72.39 73.40 72.38 74.86 73.86 Shares Outstanding 128.63 10.77617 million billion 1.228 billion 318.04 million 446.04 million 117.53 milion 52.59 million 49.95 million 36.6 million A: Goodrich purchased after market close on July 28 by United Technologies. B: Duke Energy conducts a reverse stock split of 1:3 after market close on July 2. C: Following reverse stock split for Duke Energy there were 446.04 shares outstanding