Part A.

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

	31-Dec-03	31-Dec-03	31-Dec-04	31-Dec-04
Stock	Price	Shares	Price	Shares
W	$ 75.00	10000	$50.00	20000
X	$150.00	5000	$65.00	10000
Y	$ 25.00	20000	$35.00	20000
Z	$ 40.00	25000	$50.00	25000

Stocks W and X had 2 for 1 splits after the close on Dec 31, 2003.

1. Calculate the price weighted series for Dec 31, 2003, prior to the splits. (2 Marks)
2. Calculate the price weighted series for Dec 31, 2003, after the splits (3 Marks)
3. Calculate the price weighted series for Dec 31, 2004. (2 Marks)
4. Calculate the value weighted index for Dec 31, 2004. Assume a base index value of 100. The base year is Dec 31, 2003. (3 Marks)

Calculate the percentage return in the value weighted index for the period Dec 31, 2003 to Dec 31, 2004.

Stock Price ₂₀₁₃ Price _{2010 Price 1984 base year}

A $46 $ 40 $50

B 37 36 10

C 20 23 7

D 59 61 26

E 82 70 45

F 32 30 32

Divisor 0.70 0.72 1.00

1. Assuming all stocks have the same number of stocks outstanding, calculate the market index for all 3 years using the same methodology used to calculate the Jamaica Stock Market Index. Base index value is 10.

(8 Marks)

(b) Calculate the percentage changes in the price weighted index values and market

weighted index values between 2010 and 2013. (5 Marks)