The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market Index (TMI) isvalue-weighted and its base day is Day 1. You hold a portfolio with one share of company A and two shares of company B.Company BDay12Price$8.00$8.64Company A# of Shares900900Price$12.00$13.56weight.)1. What is the return on your portfolio from Day 1 to Day 2?# of SharesExpress your answers to the following questions in percentage form rounded to one decimal.1,8011,8012. What is the difference between the return on your portfolio and the return on the TMI from Day 1 to Day 27 (Your return minus the index weight.)3. What is the difference between the weight of company A in the TMI and the weight of Company A in your portfolio? (Your weight minus the index

A stock market index helps in measuring the performance of a subset of or the entire stock market.…

The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market Index (TMI) is value-weighted and its base day is Day 1. You hold a portfolio with one share of company A and two shares of company B. Day 1 2 Price $8.00 $8.64 Company A # of Shares 900 900 Price $12.00 $13.56 Company B # of Shares 1. What is the return on your portfolio from Day 1 to Day 2? 1,801 1,801 Express your answers to the following questions in percentage form rounded to one decimal. 2. What is the difference between the return on your portfolio and the return on the TMI from Day 1 to Day 27 (Your return minus the index weight.) 3. What is the difference between the weight of company A in the TMI and the weight of Company A in your portfolio? (Your weight minus the index weight.)

The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table below. The Tiny Market Index (TMI) is value-weighted and its base day is Day 1. You hold a portfolio with one share of company A and two shares of company B. Day 1 2 Price $8.00 $8.64 Company A # of Shares 900 900 Price $12.00 $13.56 Company B # of Shares 1. What is the return on your portfolio from Day 1 to Day 2? 1,801 1,801 Express your answers to the following questions in percentage form rounded to one decimal. 2. What is the difference between the return on your portfolio and the return on the TMI from Day 1 to Day 27 (Your return minus the index weight.) 3. What is the difference between the weight of company A in the TMI and the weight of Company A in your portfolio? (Your weight minus the index weight.)

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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The table below describes the price per share (P) and the number of shares outstanding (Q) at time = 0 and then again at time = 1. The subscripts indicate which time (t = 0 or 1) that the information applies to. Stock A Stock B Po 90 50 Qo 100 200 P₁ 95 45 Q₁ 100 200 (A) What is the "market cap" for Stock A at time 0? 9000 (B) Assume you have an index that includes only these 2 stocks. What is the value-weighted rate of return for the index from time O to time 1? Choose the answer closest to the correct number. -0.026 (C) Assume someone asked you calculate the equal-weighted return for a portfolio that included these 2 stocks. What is the equal-weighted return from time 0 to time 1? 0.055
Consider the following stock price and shares outstanding information. PWIyear 1: PWIYear 2: a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round answers to two decimal places. VWIyear 1: VWIYear 2: DECEMBER 31, Year 2 Shares DECEMBER 31, Year 1 Shares Outstanding Price Outstanding 107,000,000 $29 107,000,000 2,500,000 48 29,000,000 43 5,000,000² 29,000,000 % % Price $22 70 39 b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: % Stock K Stock M Stock R aStock split two-for-one during the year. Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places.
Assume the following information concerning two stocks that make up an index. What is the price-weighted return for the index? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Kirk, Incorporated Picard Company Return Shares Outstanding 39,000 28,000 2.20 % Price per Share Beginning of Year $72 End 113 of Year $ 77 122
An index consists of the following securities. What is the ending value-weighted index? You can assume the beginning value of the index as 1,000 units. Stock Fly High Drive By Ride In 1,062. 1,202.00. 956.00. 1,112.00. 1,000. 939.00. 1,012.00. # of shares 1,200 750 2,000 Beginning Price $250 $550 $55 Ending Price $280 $530 $70
Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index
Suppose you have the following information from Muscat stock market Second day closing price Stock Share Base day outstanding Closing price Salalah company Dhofar power company | 26 Oman company 18 3 2.8 2.8 3.1 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index
Suppose you have the following information from Muscat stock market Stock Share outstanding Base day Closing price Second day closing price Salalah company 18 3 2.8 Dhofar power company 26 2.8 3.1 Oman company 10 4.1 2.1 Dhofar bank 28 3 1.8 Calculate 1. Price weighted index 2. Value weighted index plz show steps
You are given the following information regarding prices for stocks of the followingfirms: PRICE Stock Number of Shares T T+ 1 ScotBank Ltd. 1,000,000 60 80 Jetvan Ltd 10,000,000 20 35 PriceLife Ltd. 30,000,000 18 25 i. Construct a price-weighted index for these three stocks and compute the percentagechange in the series for the period from T to T +1. ii. Construct a market-value-weighted index for these three stocks and compute thepercentage change in the series for the period from T to T +1. iii. Based on your answer above, which of these indexes BEST illustrate the movementon the stock market.
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
Suppose all possible investment opportunities in the world are limited to the five stocks listed in the following table. What are the market portfolio weights? (Click on the following icon O in order to copy its contents into a spreadsheet.) Number of Shares Outstanding (millions) Stock Price/Share ($) A 8.43 10 В 19.15 12 C 5.94 46.68 1 E 42.87 ..... Enter the percentage that each stock makes up of the total portfolio: (Round to two decimal places.) Stock % of Total (portfolio weight) A % В % E % 20
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%
Given the following information concerning three stocks, Stock Price Shares Outstanding A $10 1,000,000 B $14 3,000,000 C $21 10,000,000 a. Construct a simple average, a value-weighted average, and a geometric average. b. What are averages if each price rises to $11, $17, and $35, respectively? c. What is the percentage increase in each average?

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