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6 points) You plan to track each of these three indices ( with only the three stocks A, B and C ). Suppose you have
6 points) You plan to track each of these three indices (with only the three stocks A, B and C). Suppose you have $1,000,000 to invest on day 0, and you are allowed to buy fractional shares.
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How many shares of each stock would you buy on day 0 to track (a) the price- weighted index (b) the value-weighted index and (c) the equal-weighted index?
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How many shares of each stock would you buy on day 1 to track (a) the price- weighted index (b) the value-weighted index and (c) the equal-weighted index?
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