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You've collected the following information for three stocks: Shares Price Stock (million) 2017 2018 A 85...

You've collected the following information for three stocks:

Shares Price

Stock (million) 2017 2018

A 85 132 115

B 134 93 98

C 300 46 56

a. What is the relative change in a price-weighted index? Enter your answer as a decimal number or with the percentage sign.

b. What is the relative change in a market value-weighted index? Enter your answer as a decimal number or with the percentage sign.

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Answer #1

Price weighted index = Average of prices

Market value weighted index = Market cap of all stocks

Stock Shares in million 85 134 2017 132 93 46 2018 115 98 56 4 Price weighted index 90.33 89.67 -AVERAGE(D3:D5) AVERAGE(E3:E5

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