Explain differences among graphs and the return calculations

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Reference no: EM131231854

Choose five stocks that are included in the DJIA. Download the daily closing prices for these five stocks for the past 30 days from the Yahoo! Finance Web site at

a. Compute and graph a daily price-weighted index for these five stocks over the past month. What was the return on the index over the 30-day period?

b. Find the number of shares outstanding for these five companies. Using this information, calculate a market-weighted index for the 30-day period. Graph the index and compute the return on this index over the past month.

c. Construct and graph an un weighted average index for this five-stock portfolio. Compute the rate of return on this index for the 30-day period.

d. Compare and contrast the graphs that you created and the 30-day returns you calculated.

e. How do you explain the differences among the graphs and the return calculations?

Reference no: EM131231854

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