Solution-Explain the difference in results between the two

Explain the difference in results between the two indices

Reference no: EM133071681

Share price and shares outstanding information is given below.

	31 DECEMBER 2019		31 DECEMBER 2020
	Price	Shares outstanding	Price	Shares outstanding
Share K	20	100 000 000	32	100 000 000
Share M	80	2 000 000	45	4 000 000*
Share R	50	25 000 000	42	25 000 000

*Share split two-for-one during the year.

A. Based on the info in the table, compute 2019 and 2020 values for a price-weighted index and a market-value-weighted index.

B. Compute the percentage change in the value of each index during the year.

C. Explain the difference in results between the two indices.

Reference no: EM133071681

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Explain the difference in results between the two indices

Reference no: EM133071681

Reference no: EM133071681

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