Question
a. Based on the following stock price and shares outstanding information compute the beginning and ending values for a price-weighted index and a market-value-weighted
a. Based on the following stock price and shares outstanding information compute the beginning and ending values for a price-weighted index and a market-value-weighted index. (12 Marks) DECEMBER 31, 2011 Price Shares Outstanding Price DECEMBER 31, 2012 Share Outstanding Stock K 20 100,000,000 32 100,000,000 Stock M 80 2,000,000 45 4,000,000 Stock R 40 25,000,000 42 25,000,000 Stock M split two-for-one during the year. b. Compute the percentage change in the value of each index during the year c. Explain the difference in results between the two indexes. (8 Marks) (5 Marks)
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
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