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

See similar textbooks

Similar questions

How do you calcuate the bechmark and historical return for the stock ARKK when the last price listed is $123.40 and the current value is $26,531.00.
1. Consider the three stocks in the following table. P, represents price at time t, and Q, represents shares outstanding at time t. Calculate the rates of return on the following indexes of the three stocks: A B с Po 90 50 100 a. A market-value-weighted index. b. An equally weighted index. Qo 100 200 200 P₁ 95 45 110 Q₁ 100 200 200
What are the portfolio weights for a portfolio that has 125 shares of Stock A that sell for $82 per share and 100 shares of Stock B that sell for $74 per share? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) Stock A: Stock B:
Three stocks are included in the price-weighted 6ULE stock index. Their current share prices are shown below: Annuity Manufacturing Perpetuity Production, Inc. Additivity Amalgamated Company If the current value of the 6ULE index is 1000, what is the current divisor? 1.00 0.27 0.60 0.90 Current Price $65 $111 $94 0.54
The following table displays hypothetical stock quotations. Use the information in the table to answer the questions that follow. Listed Stock Quotes Company Ticker High Low Last Price* Net Change** YTD %*** Div. Yield P/E Ratio MarkMin MM 93.06 67.68 84.60 4.56 1.66 0 46 MarlRedBiro MRB 14.00 9.15 10.77 2.01 7.19 6.0 10 TStar TS 341.06 221.69 284.22 2.70 5.02 2.4 26 *Last price for the day **Net change in price from previous day ***Year-to-date percentage change in stock price Of the three stocks listed, a retiree who lives partially off of investment income would be best off holding because of its . You can calculate that MarkMin had per-share earnings for the most recent 12-month period of . If you had purchased 100 shares of TStar stock yesterday at the last price of the day, you would have of if you sold all 100 shares at the last price today.
Consider a market value-weighted index consisting of 3 stocks: A, B, and C. The stocks' prices at time 0 (p0) and time 1 (p1) are given below, along with the number of shares outstanding. Calculate the index levels at time 0. Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321. stock p0 p1 outstanding shares 43 45 200 69 50 500 11 12 600 A B C
Use the data table to answer the question that follows. Stock A Stock B Stock C 52W high; 52W low $87.54; $32.21 $9.68; $6.25 $37.11; $35.92 Div 0 $0.05 $0.75 P/E 36 20 7.9 Close $85.43 $6.98 $36.87 An investor's primary concern with adding a new stock to their portfolio is value for the price paid. Which stock should they choose and why? Stock B, because lower-priced stocks are more likely to be good deals in the financial market Stock B, because its P/E ratio means that it is earning more per share than its price Stock C, because its relatively lower P/E ratio indicates the others may be overvalued Stock C, because its relatively higher Div value means it is the best overall deal
(5)
According to the explanation of the attached picture in my textbook is that " price-weighted index (e.g., Dow Jones) is computed by summing the prices of the individual stocks, then dividing by a divisor to determine the base index value. The divisor, such as 100, relates the starting value and is adjusted as stocks split or composition of the index is changed" please illustrate the calculation of stock market indexs and market value-weighted index correlatively with the table in picture and the explanation below the table to make me understand why divisor is 100, what's the core concept in calculating both price-weighted index and market value-weighted index in the table
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 с Po 81 41 82 Rate of return 20 100 200 200 Divisor P1₁ 86 36 92 21 100 200 200 Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to t= 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) % P2 86 36 46 Q2 100 200 400 b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Consider the three stocks in the following table. P(t) represents price at time t, and Q(t) represents shares outstanding at time t. Stock C splits two-for-one in the last period. What is the new divisor for the price-weighted index that is formed using Stocks A, B, and C if the starting divisor is 3? B 2.475 2.340 2.455 2.375 P(1) 95 45 100 Q(1) 100 200 200 P(2) 95 45 50 Q(2) 100 200 400
pm.3

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS