1.A benchmark index has three stocks priced at $43, $66, and $76. The number of outstanding shares for each is 450,000 shares, 605,000 shares, and 753,000 shares, respectively. If the market value weighted index was 850 yesterday and the prices changed to $43, $61, and $81 today, what is the new index value?

• 840

• 850

• 855

• 845

• 2. What is the rate of return on your margined position (assuming again that you invest $10,000 of your own money) if Xtel is selling after 1 year at: (i) $78.40; (ii) $70; (iii) $61.60? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel pays no dividends. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) . Continue to assume that a year has passed. How low can Xtels price fall before you get a margin call? (Round your answer to 2 decimal places.)