Problem: Price-Weighted and Value-Weighted Index Problem
Price per Share
Shares Outstanding Beginning of YR Price End of YR Price
ABC Stock 50,000 $75.00 $83.00
XYZ Stock 60,000 $50.00 $65.00
1) ABC and XYZ stock make up an index. What is the price-weighted return for the index?
2) What is the value related return for the above index?
Please show all step-by-step calculations.