# Stock Market Index (using Polish stock prices)

The accompanying table shows the complete history of stock prices on the Polish stock exchange for 9 weeks in 1991. At that time only 5 stocks were traded. Construct two market indexes, one using weights as calculated in the Dow Jones Industrial Average, the other using weights as calculated in the Standard and Poor's Composite

Index.

Prices (in zlotys) for the first 9 weeks' trading on the Warsaw Stock Exchange beginning in April 1991. There was one trading session per week. Only five stocks were listed in the first 9 weeks.

Stock

Tonsil Prochnik Krosno Exbud Kable

(Electronics) (Garments) (Glass) (Construction) (Electronics)

Week 1500 1500 2200 1000 1000

1 85 56 59.5 149 80

2 76.5 51 53.5 164 80

3 69 46 49 180 80

4 62.5 41.5 47 198 79.5

5 56.5 38 51.5 217 80

6 56 41.5 56.5 196 80

7 61.5 45.5 62 177 80

8 67.5 50 60 160 80.5

9 61 45.5 54 160 72.5

Use the MS Excel AVERAGE function to calculate the average price of stocks for the DJIA method and use the MS Excel SUM function to calculate the total market value for the S&P 500 method.

Dow Jones Method

Average % change Index

price in average (using

of stocks stock DJIA

Week in market price method)

1 FORMULA

2 FORMULA #DIV/0! FORMULA

3 FORMULA #DIV/0! FORMULA

4 FORMULA #DIV/0! FORMULA

5 FORMULA #DIV/0! FORMULA

6 FORMULA #DIV/0! FORMULA

7 FORMULA #DIV/0! FORMULA

8 FORMULA #DIV/0! FORMULA

9 FORMULA #DIV/0! FORMULA

S&P 500 Method

Total % change Index

Market in total using

Value of market S&P

Week Stocks value Method

1 FORMULA

2 FORMULA #DIV/0! FORMULA

3 FORMULA #DIV/0! FORMULA

4 FORMULA #DIV/0! FORMULA

5 FORMULA #DIV/0! FORMULA

6 FORMULA #DIV/0! FORMULA

7 FORMULA #DIV/0! FORMULA

8 FORMULA #DIV/0! FORMULA

9 FORMULA #DIV/0! FORMULA

https://brainmass.com/business/profitability-index/stock-market-index-using-polish-stock-prices-113928

#### Solution Summary

Constructs two market indexes (for stock prices on the Polish stock exchange), one using weights as calculated in the Dow Jones Industrial Average, the other using weights as calculated in the Standard and Poor's Composite