FIN253 Fundamentals Of Investment

Fundamentals Of InvestmentTU Board 2079

Consider the following price information on three stocks on two dates with corresponding number of shares outstanding: StockNumber of sharesPriceDec. 31, 2018Dec. 31, 2019A2,000Rs. 300Rs.…

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Consider the following price information on three stocks on two dates with corresponding number of shares outstanding:

StockNumber of sharesPriceDec. 31, 2018Dec. 31, 2019A2,000Rs. 300Rs. 700B8,000300380C8,000200260 a. Construct a price-weighted index for these three stocks, and also compute the percentage change in the index the period from 2018 to 219. b. Construct a market value weighted index for these three stocks and also compute the percentage change in the index for the period from 2018 to 2019. c. Construct an equally -weighted index. What is the percentage change in wealth for this equally-weighted portfolio? d. Briefly discuss the difference in the results for the three stock indexes.

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