What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).

Q: a. A market-value-weighted index. b. An equally weighted index.

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A:

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Q: v (b) What is the expected portfolio return on a portfolio comprised of i. 25% ABC and 75% XYZ? ii.…

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Q: How would i do this question?

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Q: Using the data in the following table,, estimate the: a. Average return and volatility for each…

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Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: Here, ProbAB0.1-5%-40%0.22%0%0.514%24%0.124%20%0.139%42%

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Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.