Use the table for the question(s) below. Consider the following stock price and shares outstanding data: Stock Price per Name Share Lowes $28.80 Walmart $47.90 Intel- $19.60 Boeing $75.00 Assume that you have $100,000 to invest and you are interested in creating a value-weighted portfolio of these four stocks. The percentage of the shares outstanding of Boeing that you would hold in your portfolio is closest to: 000031%. 000018%. 0.000020%. Shares Outstanding (Billions) 1.53 4.17 5.77 0.79 000024%.
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- Assume you are given the following abbreviated financial statement. (look at the picture sent) On the basis of this information, calculate as many liquidity, activity, leverage, profitability, and common stock measures as you can. (Note: Assume the current market price of the common stock is $75 per share.)Suppose all possible investment opportunities in the world are limited to the five stocks listed in the following table. What are the market portfolio weights? (Click on the following icon O in order to copy its contents into a spreadsheet.) Number of Shares Outstanding (millions) Stock Price/Share ($) 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 % 201.You are given the following information regarding prices for a sample of stocks. PRICE STOCK NUMBER OF SHARES T T +1 A 1,000,000 60 80 B 10,000,000 20 35 C 30,000,000 18 25 a.Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. b.Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1 c.Briefly discuss the difference in the results for the two indexes.
- 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 in order to copy its contents into a spreadsheet.) Stock А A BUDE C Price/Share (5) 10.00 20.00 8.00 50.00 45.00 C D Number of Shares Outstanding (millions) 10 12 3 1 20 Enter the percentage that each stock makes up of the total portfolio. (Round to two decimal places) Stock % of Total (portfolio weight) A B CELLE %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.For the following stock investment, find (a) the total purchase price, (b) the total dividend amount, (c) the capital gain or loss, (d) the total return, and (e) the percentage return. Ignore broker and SEC fees. (a) What is the total purchase price? $ (Simplify your answer.) ... Number of shares Purchase price per share Dividend per share Sale price per share 20 $22.50 $1.35 $19.45
- You ask a stockbroker what the firm’s research department expects for the three (3) stocksabove, that is, Stock X, Y and Z. The broker responds with the following information:Stock Current Price Expected Price Expected Dividend X 22 24 0.75 Y 48 51 2.00 Z 37 40 1.25Required:B. Calculate the estimated future rate of return for Stock X, Y, and Z. C. Determine which stock is overvalued, undervalued, properly valued, and state whyD. Illustrate with the use of the Security Market Line (SML) how Stock X , Y and Z wouldappear on it.Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billions) Lowes $28.80 1.53 Walmart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 Assume that you have $100,000 to invest and you are interested in creating a value-weighted portfolio of these four stocks. The number of shares of Walmart that you would hold in your portfolio is closest to: A) 710. B) 1390. C) 1000. D) 870.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
- 1. You are given the following information regarding prices for a sample of stocks. PRICE Stock Number of Shares T+1 A 1,000,000 60 80 10,000,000 20 35 30,000,000 18 25 Chapter 4: Security Market Indexes and Index Funds 117 a. Construct a price-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. b. Construct a value-weighted index for these three stocks, and compute the percentage change in the index for the period from T to T + 1. e. Briefly discuss the difference in the results for the twu indexes. 2. a. Given the data in Problem 1, construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? b. Compute the percentage of price change for each of the stocks in Problem 1. Compute the arithmetic mean of these percentage changes. Discuss how this answer compares to the answer in part (a). c. Compute the geometric mean of the percentage changes…You are given the following information regarding prices for a sample of stocks. Stock A B C Number of Shares 1,500,000 13,000,000 30,000,000 % T $80 26 23 a. Construct an equal-weighted index by assuming $1,000 is invested in each stock. What is the percentage change in wealth for this portfolio? Do not round intermediate calculations. Round your answer to two decimal places. PRICE % b. Compute the percentage of price change for each of the stocks. Do not round intermediate calculations. Round your answers to two decimal places. 7+1 $98 37 29 Stock A: Stock B: Stock C: % Compute the arithmetic mean of these percentage changes. Do not round intermediate calculations. Round your answer to two decimal places. 8 E 46 L c. Compute the geometric mean of the percentage changes in Part b. Do not round intermediate calculations. Round your answer to two decimal placesConsider the three stocks in the following table. P, represents the price at time t, and Q, represents the total shares outstanding at time t. Calculate the rate of return on a price-weighted index of three stocks for the first period (t=0 to t=1). Table 2: Data for Q4 & Q5 Q0 P1 Q1 PO 100 50 105 50 A B 200 100 210 100 C 300 100 250 100