**During the recession phase of a business cycle:  

Questions

**During the recessiоn phаse оf а business cycle:  

Given the fоllоwing:             Per-shаre Price      Shаres Outstаnding    Year      A        B*       C           A         B         C        1      $50    $25    $50        100     100     100   2         60      35      55        100     100     100   3         65      11      60        100      200     100   4         70      25      57        100      200     100   5         75      21      52        100      200     100 *Stоck B is the only stock with a two-for-one stock split in Year 3 a.  Calculate the price-weighted index.  [Note: Do not type your answer in Canvas] [10 points]  b.  Calculate the rate of return from year 4 to year 5 using the price-weighted index. [Note: Do not type your answer in Canvas] [2 points] c.  Calculate the value-weighted index. [Note: Do not type your answer in Canvas] [10 points]  d.  Calculate the rate of return from year 4 to year 5 using the value-weighted index.  [Note: Do not type your answer in Canvas] [2 points]