Question: You are given the following information regarding prices for a sample of stocks. a. Construct a price-weighted index for these three stocks, and compute the

You are given the following information regarding prices for a sample of stocks.

a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.
b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1.
c. Briefly discuss the difference in the results for the twoindexes.

PRICE Stock Number of Shares 1,000,000 10,000,000 30,000,000 60 20 18 T +1 80 35 25

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