Question

You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T T+1 A 3,200,000 $70 $88 B 10,000,000 24 38 C 27,000,000 20 34 a. Construct a price-weighted Index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places. 40.35% b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places. %

          You are given the following information regarding prices for a sample of stocks.
PRICE
Stock
Number of Shares
T
T+1
A
3,200,000
$70
$88
B
10,000,000
24
38
C
27,000,000
20
34
a. Construct a price-weighted Index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
40.35%
b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
%

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You are given the following information regarding prices for a sample of stocks.
PRICE
Stock
Number of Shares
T
T+1
A
3,200,000
7088
B
10,000,000
24
38
C
27,000,000
20
34
a. Construct a price-weighted Index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
40.35%
b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from 7 to T + 1. Do not round intermediate calculations. Round your answer to two decimal places.
%

Added by Erica D.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Karan Deep

Step 1

To construct a price-weighted index, we need to calculate the sum of the prices of the stocks at time T and time T + 1, and then divide by the sum of the prices at time T. At time T: Stock A: $24 * 3,200,000 = $76,800,000 Stock B: $20 * 10,000,000 = Show more…

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Ch 4 You are given the following information regarding prices for a sample of stocks. PRICE T + 1 $70.88$ 24 20 24 Stock A B C Number of Shares 3,200,000 10,000,000 27,000,000 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places. 40.35% b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. Do not round intermediate calculations. Round your answer to two decimal places. %

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