Lindsay Kelly bought 100 shares of Google, 300 shares of Microsoft, and 500 shares of Nokia in January 2005. The adjusted close prices of these stocks over the next three years are shown in the accompanying table.
a. Compute and interpret the unweighted aggregate price index for Lindsay's portfolio, using 2005 as the base year.
b. Compute and interpret the corresponding weighted price index using the Laspeyres approach.
c. Why are the results from parts a and b so different?