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Consider the following information on the stock market in a small economy. ...

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Finance

Consider the following information on the stock market in a small economy.

Company Shares Outstanding Price, beginning of year Price, end of year
1 100 $60 $65
2 1000 $16 $19
3 10,000 $5 $7

Instructions: Round your answers to 1 decimal place.

a. Compute a price-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change?

The percentage change is

b. Compute a value-weighted stock price index for the beginning of the year and the end of the year. What is the percentage change? (Note: The value of a firm is calculated by multiplying the number of its shares by the prices of those shares.)

The percentage change is %.

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