Following table shows the price information for three stocks:
|
Stock
|
Price0
|
Quantity0
|
P1
|
Q1
|
|
A
|
$70
|
50
|
$85
|
50
|
|
B
|
10
|
150
|
12
|
150
|
|
C
|
100
|
30
|
50
|
60
|
1. What happened for stock C during this period?
2. Calculate the price-weighted index value at time 0 and at time 1 assume the divisor for time 1 is 2.35.
3. What is the rate of return if you use price-weighted method?
4. Calculate the market value-weighted index value at time 1.