Question #$4$: Price$-$Weighted Index vs$.$ Value$-$Weighted Index $[20$ Points$]$

Suppose that there is a stock market index that tracks the performance of $5$ large gambling corporations.

This index is called "Gambling Index" The $5$ stocks in the index are:

Caesars Entertainment Corp $($Stock Symbol: CZR$)$: Shares Outstanding: $335,900$

Las Vegas Sands Corp $($Stock Symbol: LVS$)$: Shares Outstanding: $534,500$

MGM Resorts International $($Stock Symbol: MGM$)$: Shares Outstanding: $480,800$

Monarch Casino & Resort $($Stock Symbol: MCRI$)$: Shares Outstanding: $18,600$

Wynn Resorts Ltd $($Stock Symbol: WYNN$)$: Shares Outstanding: $226,600$

Go to

finance.yahoo.com and retrieve the stock price of each of the firms in the Gambling Index for two

dates: August $29,2023$ and August $30,2023.[$Enter the stock symbol, then click on historical prices, and

use the "Adj. close" price$]$

$($a$)$ Compute the daily percentage return of the index between August $29,2023$ and August $30,2023$ using

a price$-$weighted index. The initial price is the adjusted close price from August $29$ and the end price is

the adjusted close price from August $30[8$ Points$]$

$($b$)$ Compute the daily percentage return of the index between August $29,2023$ and August $30,2023$

using a value$-$weighted index. $[12$ Points$][$Hint: You will need shares outstanding to find the value$-$

weighted index. Use the number of shares outstanding given above.$]$