Question: PPS S/O A B A B 1 $48 $40 50 100 2 52 49 50 100 3 39 24 50 200 4 58 27 50

PPS S/O
A B A B
1 $48 $40 50 100
2 52 49 50 100
3 39 24 50 200
4 58 27 50 200
5 66 25 50 200

*Stock B has a two-for-one stock split in year 3.

Calculate the price-weighted index and the value-weighted index.

Calculate the percentage change from year 2 to year 3 for both indexes.

PPS=Price per share. S/O= Shares outstanding

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