Compute a price-weighted index of four stocks

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Reference no: EM133076002

You are given the following information regarding four stocks in a portfolio: 

Company

Number of Shares

Price ($) 2019

Price ($) 2020

BIL

60 000

72.00

68.00

JMMB

35 000

85.00

90.50

MIL

40 000

119.00

119.00

SIJL

15 000

359.00

300.10

Assuming 2019 is the base year with an index value of 100: 

  1. Compute a price-weighted index of these four stocks for 2020. What is the percentage change in the value of the index from 2019 to 2020?
  2. Compute a value-weighted index of these four stocks for 2020. What is the percentage change in the value of the index from 2019 to 2020?
  3. Compute an unweighted index of these four stocks for 2020 if the investor has $4 000 000 to invest. What is the percentage change in the value of the index from 2019 to 2020?

Reference no: EM133076002

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