Solution-Construct a price-weighted index for these three

Construct a price-weighted index for these three stocks

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Reference no: EM133115358

Question - Assume you are provided with the following data:

Stock	Number of Shares	Price of T	P rice (T+1)
L auren Corp	1,000.000	60	80
Kayleigh co.	10,000,000	20	35
Madison LTD	30,000,000	18	25

Required -

1. 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.

2. 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.

3. Briefly discuss the difference in the results for the two stock indexes.

4. Discuss the three common mistakes that can bias the results against the Efficient Market Hypothesis.

Reference no: EM133115358

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Construct a price-weighted index for these three stocks

Reference no: EM133115358

Reference no: EM133115358

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