Compute a price-weighted stock price index

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Consider the following information on the stock market in a small economy. Company Shares Outstanding Price, beginning of year Price, end of year 1 100 $120 $115 2 1000 $22 $25 3 10,000 $10 $8 Instructions: Round your answers to 1 decimal place. a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? The percentage change is . b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? The percentage change is .

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