You are given the following information regarding prices for stocks of the following firms: PRICE Stock Number of Shares T T+ 1 ScotBank Ltd. 1,000,000 60 80 Jetvan Ltd 10,000,000 20 35 PriceLife Ltd. 30,000,000 18 25 i. Construct a price-weighted index for these three stocks and compute the percentage change in the series for the period from T to T +1. ii. Construct a market-value-weighted index for these three stocks and compute the percentage change in the series for the period from T to T +1. iii. Based on your answer above, which of these indexes BEST illustrate the movement on the stock market.
You are given the following information regarding prices for stocks of the following
firms:
PRICE
Stock Number of Shares T T+ 1
ScotBank Ltd. 1,000,000 60 80
Jetvan Ltd 10,000,000 20 35
PriceLife Ltd. 30,000,000 18 25
i. Construct a price-weighted index for these three stocks and compute the percentage
change in the series for the period from T to T +1.
ii. Construct a market-value-weighted index for these three stocks and compute the
percentage change in the series for the period from T to T +1.
iii. Based on your answer above, which of these indexes BEST illustrate the movement
on the stock market.
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