Consider a market value-weighted index with only 3 stocks: Stock A, Stock B, and Stock C. The current shares and current prices, as well as the original mumber of shares and original prices, of the stocks are summarized in the following table: Current Shares Current Price Original Shares Original Price Stock A Stock B Stock C 300 100 200 Assuming the base value is 100, the index level is $48 $69 $91 100 100 100 $28 $79 $51 Round your answer to 4 decimal places.

Consider a market value-weighted index with only 3 stocks: Stock A, Stock B, and Stock C. The current shares and current prices, as well as the original mumber of shares and original prices, of the stocks are summarized in the following table: Current Shares Current Price Original Shares Original Price Stock A Stock B Stock C 300 100 200 Assuming the base value is 100, the index level is $48 $69 $91 100 100 100 $28 $79 $51 Round your answer to 4 decimal places.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You construct a price-weighted index of 49 stocks. At the beginning of the day, the index is 6,725.88. During the day, 48 stock prices remain the same, and 1 stock price increases $5.70. At the end of the day, your index value is 6,749.19. What is the divisor on your index? Note: Do not round intermediate calculations. Round your answer to 8 decimal places. what is the Divisor?
9
Suppose a stock index contains the stock of 3 firms: A, B and C. The stock prices for the three firms are $30, $21 and $39, respectively. The firms have 98 million, 127 million and 130million shares outstanding, respectively. If the index is value-weighted, calculate its initial value.
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A stock has had the following year-end prices and dividends: Year 1234 in 10 5 6 Price $64.68 71.55 77.35 63.62 73.81 83.25 Dividend Arithmetic average return. Geometric average return $.67 .72 .78 .87 .94 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16. % %
Problem 2-12 (Algo) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. Stock Po A B P1 01 P2 02 00 140 145 145 145 145 145 135 290 130 290 130 290 270 290 280 290 145 580 C Required: Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t = 1): Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. A market-value-weighted index. b. An equally weighted index. a. Rate of return b. Rate of return % %
An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Index Stock Shares Outstanding 1,000 Beginning Share Price $26 Ending Share Price 4,000 $32 $28 $30 3,000 $19 $ 22 DEF 9.33% 10.35% 11.54% 12.33% 13.00%
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Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. A B C Ро 90 50 100 Rate of return 90 100 200 200 P1 95 45 110 Rate of return b. An equally weighted index Required: Calculate the first-period rates of return on the following indexes of the three stocks: (Do not round intermediate calculations. Round answers to 2 decimal places.) a. A market value-weighted index % 01 100 200 200 % P2 95 45 55 92 100 200 400
H2. A benchmark index has three stocks priced at $60, $65, and $70. The number of outstanding shares for each is 444,000 shares, 555,000 shares, and 777,000 shares, respectively. Suppose the price of these three stocks changed to $40, $70, and $90, respectively and number of outstanding shares did not change, what is the equal-weighted index return?
Demonstrate the impact of different values on a market value weighted stock index with a hypothetical example considering three stocks (stock A, B and C), no. of shares and price for base year 2020 and for the year 2021 with two different cases Case A and Case B ( base year index value as 100)
A stock has had the following year-end prices and dividends: Year Price $ 64.98 123456 Dividend 71.85 $ .73 77.65 .78 63.92 .84 74.41 .93 86.25 1.00 What are the arithmetic and geometric returns for the stock? Note: Do not round intermediate calculations and enter your al

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