You are given the following information regarding four stocks in a portfolio: Company  # of Shares  Price ($) 2020 Price ($) 2021 ELITE 40,000  3.11  2.99 FTNA 5,000 30.37 34.10 GWEST  55,000  2.05 1.80 TTECH 20,000   5.55 4.60 Assuming 2020 is the base year with an index value of 500: i. Compute a price-weighted index of these four stocks for 2021. ii. Compute a value-weighted index of these four stocks for 2021. What is the percentage change in the value of the index from 2020 to 2021? iii. Compute the un-weighted index of these four stocks for 2019. What is the percentage change in the value of the index from 2020 to 2021

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 7P
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You are given the following information regarding four stocks in a portfolio:

Company  # of Shares  Price ($) 2020 Price ($) 2021
ELITE 40,000  3.11  2.99
FTNA 5,000 30.37 34.10
GWEST  55,000  2.05 1.80
TTECH 20,000   5.55 4.60

Assuming 2020 is the base year with an index value of 500:

i. Compute a price-weighted index of these four stocks for 2021.

ii. Compute a value-weighted index of these four stocks for 2021. What is the percentage change in the value of the index from 2020 to 2021?

iii. Compute the un-weighted index of these four stocks for 2019. What is the percentage change in the value of the index from 2020 to 2021

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