Construct a price weighted index for given three stocks

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Reference no: EM131200419

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

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

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 two indexes.

Reference no: EM131200419

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