Question: Question 2 Examine the information below and answer the following questions NUMBER CLOSING ( per shares company outstanding Day T Day T +1 1 2.000

Question 2 Examine the information below and answer the following questions

	NUMBER	CLOSING	( per shares
company	outstanding	Day T	Day T +1
1	2.000	$30.00	$35.00
2	6.000	55.00	50.00
3	3.000	22.50	25.00
4	4.000	40.00	42.50

a. Assume that a stock price-weighted indicator consisted of the four issues with their prices. What are the values for the Day T and T + 1 and what is the change? (10 marks) b. For a value-weighted series, assume that Day T is the base period. What is the new index value for Day T + 1 and how has the index changed from Day T? (10 marks) c. Assume that an investor had $4,000 to invest, compute an un-weighted price indicator series. What is the percentage change in wealth for this portfolio?

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