Question: Hi, could somebody please help me with this problem. thank you 1. You are given the following information regarding prices for stocks of the following

Hi, could somebody please help me with this problem.

thank you

1. You are given the following information regarding prices for stocks of the following firms:

Stock /Number of Shares/ T / T+ 1

Lauren Corp. /1,000,000/ 60 /80

Kayleigh Co./10,000,000 /20 /35

Madison Ltd. /30,000,000/ 18 /25

a. Construct a price-weighted index for these three stocks, and compute the percentage change in the

series for the period from T to T + 1.

b. Construct a market-value-weighted index for these three stocks, and compute the percentage

change in the series for the period from T to T + 1.

c. Briefly discuss the difference in the results for the two stock indexes.

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