In: Finance
Consider the following information on the stock market.
Company |
Shares Outstanding |
Price, beginning of year |
Price, end of year |
A |
200 |
$58 |
$94 |
B |
500 |
$20 |
$25 |
C |
1000 |
$70 |
$6 |
a) Price Weighted Stock price Index at the beginning of the year = 58+20+70 / 3 =49.33
Price Weighted Stock price Index at the end of the year = 94+25+6 / 3 =41.67
Percentage Change = (41.67 - 49.33) / 49.33
Percentage Change = -15.54%
b) Value Weighed index at the beginning of the year = 91600
Value Weighed index at the end of the year = 37300
Percentage change = (37300-91600)/91600
Percentage change =-59.28%
Company | Shares Outstanding | Price beginning of year | Value Weighed (Shares *Price) | Price end of year |
Value Weighted (Shares *Price) |
A | 200 | $ 58.00 | $ 11,600.00 | $ 94.00 | $ 18,800.00 |
B | 500 | $ 20.00 | $ 10,000.00 | $ 25.00 | $ 12,500.00 |
C | 1000 | $ 70.00 | $ 70,000.00 | $ 6.00 | $ 6,000.00 |
$ 49.33 | $ 91,600.00 | $ 41.67 | $ 37,300.00 | ||
Percentage Change | -15.54% | -59.28% |