Question one (1) 25 Marks You are given the following information regarding prices for a sample...

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Question one (1) 25 Marks You are given the following information regarding prices for a sample of stocks: USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS Number of Shares Price of Shares COMPANY A B C A B C Day 1 12 23 52 500 350 250 Day 2 10 22 55 500* 350 250 Day 3 8 26 51 1000 350 250** Day 4 9 25 19 1000 350 750 **Split at Close of Day 3 *Split at Close of Day 2 (a) Calculate a Dow Jones Industrial Index for days 1,2,3 & 4. (8 Marks) (b) Calculate the Jamaica Stock Exchange Index for Day 3 if the base period is Day 1 with an initial index value is 100. (5 Marks) (c) Global Stock Index is a value weighted index with just 2 stocks in the index: ABC stock and XYZ stock. ABC ended 2005 at a price of $55 and had 1 million shares outstanding. XYZ stock ended 2005 at a price of $32 and had 4 million shares outstanding. ABC had a 2-for-1 split in 2006 at a new price of $27.50. By the end of 2006 ABC closed at $29 and XYZ stock closed at $35 for 2006. Calculate the new value of the index. (12 Marks) Question one (1) 25 Marks You are given the following information regarding prices for a sample of stocks: USE THE FOLLOWING INFORMATION FOR THE NEXT THREE PROBLEMS Number of Shares Price of Shares COMPANY A B C A B C Day 1 12 23 52 500 350 250 Day 2 10 22 55 500* 350 250 Day 3 8 26 51 1000 350 250** Day 4 9 25 19 1000 350 750 **Split at Close of Day 3 *Split at Close of Day 2 (a) Calculate a Dow Jones Industrial Index for days 1,2,3 & 4. (8 Marks) (b) Calculate the Jamaica Stock Exchange Index for Day 3 if the base period is Day 1 with an initial index value is 100. (5 Marks) (c) Global Stock Index is a value weighted index with just 2 stocks in the index: ABC stock and XYZ stock. ABC ended 2005 at a price of $55 and had 1 million shares outstanding. XYZ stock ended 2005 at a price of $32 and had 4 million shares outstanding. ABC had a 2-for-1 split in 2006 at a new price of $27.50. By the end of 2006 ABC closed at $29 and XYZ stock closed at $35 for 2006. Calculate the new value of the index. (12 Marks)