Question

Use the following table to answer the next two questions. Stock 1/2/19 Price 1/2/20 Price X...

Use the following table to answer the next two questions.

Stock

1/2/19 Price

1/2/20 Price

X

50

48

Y*

70

55

Z**

114

69

*4:3 Split after close of 1/2/19

**8:5 Split after close of 1/2/19

Find the percentage change in a price weighted index consisting of these three stocks from 2019-2020. Round intermediate steps and your final answer to four decimals.

Find the percentage change of an equally weighted index consisting of these stocks. Round intermediate steps and your final answer to four decimals. Enter your answer in decimal format. (EX: .XXXX)

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Answer #1

Given Information

Stock

1/2/19 Price

1/2/20 Price

X

50

48

Y*

70

55

Z**

114

69

*4:3 Split after close of 1/2/19

**8:5 Split after close of 1/2/19

1. Calculation of percentage change in a price weighted index consisting of these three stocks from 2019-2020

Price of Index Before Price Change is 50+30+43.8462 = 123.8462

Price of Index After Change is 50+70+114 = 234

% Change is ( 234 - 123.8462 ) / 123.8462 = 88.9440 %

W.N. 1

X = 50 (before and after same)

Y = 70

Split Ratio is 4:3 that means (133.3333%)

Price before Split is (70/7)*3 = 30

Z = 114

Split Ratio is 8:5 that means (160%)

Price before Split is (114/13)*5 = 43.8462

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