$$ QUESTION ONE a$.$ How different is a value$-$weighted index from a price$-$weighted index. $(5$ Marks$)$ b$.$ Suppose there are only two stocks on the market and the following information is given. The beginning Index value is $100.$ Stock Shares Outstanding Price Per Share GHC $$ Beginning of Year End of Year Nexus Technologies $70$ million $4\mathrm{.}55\mathrm{.}2$ Meridian Solutions $180$ million $87\mathrm{.}6$ i$.$ Construct price$-$weighted index and calculate the percentage change $(3$ Marks$)$ii$.$ Construct value$-$weighted index and calculate the percentage change $(3$ Marks$)$iii$.$ What is the purpose of a divisor? $(2$ Marks$)$ iv$.$ Suppose Meridian Solutions splits $2-$for$-1.$ What is the new divisor? $(2$ Marks$)$ c$.$ Explain the key differences between fundamental and technical analysis in evaluating investments. $(5$ Marks$)$ d$.$ Consider a market with three investors and two stocks. Investor A owns $60\%$ of stock X and $25\%$ of stock Y$.$ Investor B owns $15\%$ of stock X and $40\%$ of stock Y$.$ Investor C owns the remainder of both stocks. $$ i$.$ If the total market capitalization of stock X is GHC $85$ million and stock Y is GHC $140$ million, calculate the total portfolio value for each investor. $(3$ Marks$)$ ii$.$ If a market$-$cap weighted index is created with these two stocks, what would be the weights assigned to each stock? $(2$ Marks$)$ QUESTION TWO $(5$ marks$)$ A stock market analyst suspects that the efficiency of emerging markets differs from that of developed markets. a$.$ Explain the three forms of market efficiency. $(3$ Marks$)$ b$.$ Briefly discuss whether technical analysis would be more effective in an emerging market versus a developed market. $(2$ Marks$)$ QUESTION THREE $(15$ marks$)$ Table $1$: Additional Information for Horizon Capital Fund $20242025$ Projected Price of Asset P $9298$ Price of Asset Q $135142$ Shares in Asset P $4,5004,800$ Shares in Asset Q $3,2003,600$ Income on P $($GHS$)15,75018,240$ Income on Q $($GHS$)28,80032,400$ Horizon Capital Fund Shares Outstanding $150,000170,000$ Investor $1$ Shares in Horizon Capital Fund $45,00042,500$ Investor $2$ Shares in Horizon Capital Fund $52,50068,000$ Investor $3$ Shares in Horizon Capital Fund $52,50059,500$ i$.$ Table $1$ provides information on Horizon Capital Fund's assets and income. Additionally, Horizon Capital Fund has liabilities of GHS $65,000$ in $2024$ and projected liabilities of GHS $78,000$ in $2025$ due to operational expenses and outstanding payments to service providers. Based on this information, calculate the Net Asset Value $($NAV$)$ for Horizon Capital Fund in $2024$ and $2025.(5$ marks$)$ ii$.$ Horizon Capital Fund also has the following debt allocations among its investors: $$ Investor $1$ is responsible for $25\%$ of the fund's liabilities $$ Investor $2$ is responsible for $40\%$ of the fund's liabilities $$ Investor $3$ is responsible for $35\%$ of the fund's liabilities Based on this information and the share distribution shown in Table $1,$ calculate the net wealth $($assets plus income minus allocated liabilities$)$ of each investor in $2024$ and $2025.(10$ marks$)$