Hi Guys,

Looking to get some help on this question im struggling with:

P0 Q1 P1 Q2 P2 Q2

A $80 100 $85 100 $85 100 B $40 200 $35 200 $35 200 C $80 200 $90 200 $45 400

Note: Stock C went through a stock split

A) **Return on Market Value weighted index from date 0 to date 1** = (80)(100) + 40(200) +80(200) / (85)(100) + (35)(200) + (90)(200) = 4.89%

B) **Return on Equally weighted index from date 0 to date 1** = (85/80) -1 + (35/40) -1 + (90/80) -1 = 6.25%

C) **Return on the Price weighted index from date 1 to date 2** = So here I understand you must change the divisior due to the split -->

pw1 = (85 + 35 + 90) / 3 = $70 —> divisor for p2 = (85 + 35 + 45) / d = 70 —> d = 2.36 ----> pw2 = (85 + 35 + 45) / 2.36 = 69.9

PWI = 69.9 - 70 / 70 = 0% return. **Just want some clarification that I am doing this correctly**?

Now the ones I cant seem to figure out…

D) **A return on the market weighted index from date 1 to date 2**

**E) A return on the equally weighted index from date 1 to date 2**

Am I doing this the same way I did A and B, or do I need to account for the stock split?

Thanks guys!