Question

Consider: a) price-weighted and then b) market value weighted index consisting of 3 stocks A, B,...

Consider:

a) price-weighted and then

b) market value weighted

index consisting of 3 stocks A, B, and C. The stocks' prices at time 0 (p0) and time 1 (p1) are given below, along with the number of shares outstanding. Calculate the percentage change in index levels from time 0 to time 1.

Round answers to 4 decimal places. Please show work!

stock p0 p1 outstanding shares
A 40 45 200
B 70 50 500
C 10 12 600

I think the answers are -0.1083 and -0.1592 but I cannot remember how i got them.

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