Construct price and value weighted indexes-percentage change

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Reference no: EM131603593

Suppose there are only two stocks in the market and the following information is given:

Shares Outstanding Beginning of Year Price End of year Price

Ally Co. 100 million $60 $66

McBeal, Inc. 400 million 112 100

1. Construct price and value weighted indexes and calculate the percentage changes in each.

2. In the previous problem, suppose McBeal splits 3-for-1. bases on beginning information, what is the new divisor?

Reference no: EM131603593

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