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  3. b. instead of the prices show above, suppose we sw

B. Instead of the prices show above, suppose we switch the prices for ...

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Finance

B. Instead of the prices show above, suppose we switch the prices for
Uno and Fore. That is, Uno's stock price is $50 at time (t) and it rises
to $60 at time (t+1), and Fore's stock rises from $10 to $11 over the
same time frame. What is the percentage change in the Quad Index
if it is computed as a price-weighted index? As a value-weighted index?
Price-weighted Value-weighted
Stock # shares outstanding Price (t) Price (t+1) MV (t) MV (t+1)
Uno 1000 $50 $60
Dos 500 $20 $21
Tres 250 $40 $42
Fore 100 $10 $11
Quad Index
% change
C. Explain similarities or differences in your answers to Parts (a) and (b).

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