You are given the following information regarding prices for a sample of stocks: ...

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Accounting

You are given the following information regarding prices

for a sample of stocks:

Stock Price 2013 Price 2010 Price 1984 base year

A $46 $ 40 $50

B 37 36 10

C 20 23 7

D 59 61 26

E 82 70 45

F 32 30 32

Divisor 0.70 0.72 1.00

  1. Assuming all stocks have the same number of stocks outstanding, calculate the market index for all 3 years using the same methodology used to calculate the Jamaica Stock Market Index. Base index value is 10.

(b) Calculate the percentage changes in the price weighted index values and market

weighted index values between 2010 and 2013.

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