Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1 base period, January year 3, and March year 3 follow. Base-year quantities are set on the basis of historical volumes for the four stocks.

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Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1 base period, January year 3, and March year 3 follow. Base-year quantities are
set on the basis of historical volumes for the four stocks.
Stock
A
B
C
D
Jan
Mar
Stock
=
=
A
-
B
с
D
Industry
Oil
Computer
Steel
Real Estate
January
Year 1
Quantity
100
150
75
50
Price per Share ($)
March
Year 1
Base
31.50
65.00
40.00
16.00
Compute the price relatives for the four stocks making up the Boran index. (Round your answers to one decimal place.)
Price Relative
January
Year 3
22.75
49.00
32.00
6.50
March
Year 3
22.50
47.50
29.50
Use the weighted average of price relatives to compute the January year 3 and March year 3 Boran indexes. (Round your answers to one decimal place.)
I,
2.75
Transcribed Image Text:Boran Stockbrokers, Inc., selects four stocks for the purpose of developing its own index of stock market behavior. Prices per share for a year 1 base period, January year 3, and March year 3 follow. Base-year quantities are set on the basis of historical volumes for the four stocks. Stock A B C D Jan Mar Stock = = A - B с D Industry Oil Computer Steel Real Estate January Year 1 Quantity 100 150 75 50 Price per Share ($) March Year 1 Base 31.50 65.00 40.00 16.00 Compute the price relatives for the four stocks making up the Boran index. (Round your answers to one decimal place.) Price Relative January Year 3 22.75 49.00 32.00 6.50 March Year 3 22.50 47.50 29.50 Use the weighted average of price relatives to compute the January year 3 and March year 3 Boran indexes. (Round your answers to one decimal place.) I, 2.75
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