Consider the following stock price and no. of shares information: Stock No. of shares outstanding Stock prices at the end of 2022 (Rs) Stock prices…
BBS Fundamentals of Investment · 2080 · Solved Question with Answer
Consider the following stock price and no. of shares information:
| Stock | No. of shares outstanding | Stock prices at the end of 2022 (Rs) | Stock prices at the end of 2023 (Rs) |
| A | 2,000 | 400 | 380 |
| B | 1,000 | 150 | 165 |
| C | 5,000 | 700 | 720 |
a. Construct a price-weighted index for 2022 and 2023 and compute the percentage change in series for the period from 2022 to 2023.
b. Construct a market value weighted index 2023 and compute the percentage change in the period from 2022 to 2023.
c. Construct equally-weighted index for 2023 and compute the percentage change in series for the period from 2022 and 2023.
d. Briefly discuss the difference in the results for three stock indexes.