Consider the following information on the stock market in a small economy. ...
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Finance
Consider the following information on the stock market in a small economy.
Company
Shares Outstanding
Price, beginning of year
Price, end of year
1
100
$60
$65
2
1000
$16
$19
3
10,000
$5
$7
Instructions: Round your answers to 1 decimal place.
a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?
The percentage change is
b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? (Note: The value of a firm is calculated by multiplying the number of its shares by the prices of those shares.)
The percentage change is %.
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