Problem 4-01 You are given the following information regarding prices for a sample of stocks. Number of Shares 3,600,000 11,000,000 28,000,000 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index-for the period from 7 to F+1. Do not round intermediate calculations. Round your answer to two decimal places. % Stock A B PRICE T $76 24 16 T+1 $90 38 26 b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from Tto T+1. Do not found intermediate calculations. Round your answer to two decimal places.

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
8th Edition
ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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Problem 4-01
You are given the following information regarding prices for a sample of stocks.
%
Number of Shares
3,600,000
T
$76
24
11,000,000
28,000,000
16
a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to 7+ 1. Do not round intermediate calculations. Round your answer to two decimal places.
Stock
A
B
%
Grade it Now
PRICE
b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to T+1. Do not round intermediate calculations. Round your answer to two decimal places.
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T + 1
$90
38
26
Transcribed Image Text:Problem 4-01 You are given the following information regarding prices for a sample of stocks. % Number of Shares 3,600,000 T $76 24 11,000,000 28,000,000 16 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to 7+ 1. Do not round intermediate calculations. Round your answer to two decimal places. Stock A B % Grade it Now PRICE b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to T+1. Do not round intermediate calculations. Round your answer to two decimal places. Save & Continue Continue without saving T + 1 $90 38 26
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